Temasek Holdings, a Singapore government investment fund, and private equity firm Warburg Pincus are leading a $500 million funding round in Ola ahead of its planned IPO, the mobility firm announced.

The investment comes at a time when Ola's ride-hailing business has taken a significant hit as a result of the ongoing Covid-19 pandemic.

“Over the last 12 months we’ve made our ride hailing business more robust, resilient and efficient. With strong recovery post lockdown and a shift in consumer preference away from public transportation, we are well-positioned to capitalise on the various urban mobility needs of our customers,” Ola founder Bhavish Aggarwal said in a statement.

Temasek has been an existing investor in Ola since 2018 as a part of a secondary round worth $225 million. It is an active shareholder and investor, with four key themes guiding its investments: transforming economies, growing middle-income populations, deepening comparative advantages, and emerging champions.

Warburg Pincus MD Vishal Mahadevia said, “Warburg is excited to partner with Bhavish and Ola. They are the leading mobility platform and one of biggest consumer internet platforms in India with a robust and fast growing business. We look forward to collaborating with Bhavish and the team in the next phase of Ola’s growth.”

Ola has previously stated to the media that it is preparing for a public listing and intends to list in India. Ola will join the ranks of Zomato, Delhivery, Nykaa, and Paytm in seeking to enter the Indian market.

Aggarwal announced in the last week of June that phase 1 of its electric scooter factory in Tamil Nadu, under its Ola Electric division, is nearing completion.

Ola, which was founded in 2011 by Bhavish Aggarwal and Ankit Bhati, provides services in India, Australia, New Zealand, and the United Kingdom. It also competes with Uber in these markets.