Ola Electric Secures ?3,200 Cr for EV Expansion
ECONOMY & POLICY

Ola Electric Secures ?3,200 Cr for EV Expansion

Ola Electric has successfully secured approximately Rs 32.00 billion in funding through a combination of equity and debt sources. This investment includes contributions from prominent investors led by Temasek, as well as project debt extended by the State Bank of India. Following this funding round, the valuation of the Bengaluru-based company has increased to $5.5 billion, up from its previous $5 billion valuation.

These funds are earmarked to set the stage for an initial public offering (IPO) estimated to be in the range of $800 million to $1 billion. An individual familiar with the company's plans revealed that Ola intends to go public in the near future, and it is expected to be one of the largest automotive IPOs in India. Other investors involved in this funding round, besides Temasek, include DIG Investment and Tiger Global Management.

The capital raised will be allocated to expand Ola's electric vehicle (EV) business and establish India's inaugural lithium-ion (Li-ion) cell manufacturing facility in Krishnagiri, Tamil Nadu. These resources will also expedite the growth of Ola Electric's two-wheeler manufacturing capacity, support the launch of electric motorcycles, and pave the way for electric cars. Furthermore, the funding will accelerate the construction of the Gigafactory.

Bhavish Aggarwal, the founder and CEO of Ola Electric, emphasized the company's commitment to advancing electric mobility and core technologies. He expressed his vision to put an end to the era of internal combustion engines in automobiles and to play a pivotal role in India's transformation into a global EV hub.

In the past, Ola Electric raised over $200 million in January of the previous year from investors like Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss, and others, valuing the EV manufacturer at $5 billion. The company competes with various players in the EV industry, such as Ather Energy, Okinawa Autotech, Ampere EV by Greaves, Hero Electric, and TVS Motor Company. Ola Electric is also venturing into the production of electric cars, putting it in competition with companies like Tata Motors and Mahindra & Mahindra, as well as global giants such as Tesla and Hyundai.

Notably, Ola Electric was the sole Indian EV company selected by the government for its Production-Linked Incentive (PLI)-Advanced Chemistry Cell (ACC) Scheme, with a maximum capacity of 20 gigawatt hours (GWh). This initiative is aimed at bolstering India's self-reliance in the EV value chain.

Ola is actively establishing a Li-ion cell manufacturing facility near its Futurefactory in Krishnagiri, with an initial capacity of 5 GWh in Phase I, set to scale up to 100 GWh at full capacity. The company has invested significantly in advancing cell technology and plans to operate its Gigafactory in Krishnagiri, capable of large-scale indigenous cell manufacturing, by early next year.

Recently, Ola Electric expanded its scooter portfolio, introducing five products with a price range of Rs 89,999 to Rs 0.14 million. These scooters, part of Ola's Gen2 platform, offer diverse options across various price points in the EV market. Ola has also unveiled a motorcycle lineup, slated for release by the end of next year, featuring models named Diamondhead, Adventure, Roadster, and Cruiser, all designed to meet high global standards.

While Ola Electric reported an impressive operating revenue of Rs 3.73 billion during the 2021-22 fiscal year, compared to just Rs 8.6 million in the previous year, it also saw a fourfold increase in losses, amounting to Rs 7.84 billion in FY22. Nonetheless, the company continues to dominate the EV two-wheeler segment and maintains a strong market leadership position, with around 19,000 units registered in August, representing a remarkable year-on-year growth of over 400 per cent and sustaining a market share of approximately 30 per cent.

Ola Electric has successfully secured approximately Rs 32.00 billion in funding through a combination of equity and debt sources. This investment includes contributions from prominent investors led by Temasek, as well as project debt extended by the State Bank of India. Following this funding round, the valuation of the Bengaluru-based company has increased to $5.5 billion, up from its previous $5 billion valuation. These funds are earmarked to set the stage for an initial public offering (IPO) estimated to be in the range of $800 million to $1 billion. An individual familiar with the company's plans revealed that Ola intends to go public in the near future, and it is expected to be one of the largest automotive IPOs in India. Other investors involved in this funding round, besides Temasek, include DIG Investment and Tiger Global Management. The capital raised will be allocated to expand Ola's electric vehicle (EV) business and establish India's inaugural lithium-ion (Li-ion) cell manufacturing facility in Krishnagiri, Tamil Nadu. These resources will also expedite the growth of Ola Electric's two-wheeler manufacturing capacity, support the launch of electric motorcycles, and pave the way for electric cars. Furthermore, the funding will accelerate the construction of the Gigafactory. Bhavish Aggarwal, the founder and CEO of Ola Electric, emphasized the company's commitment to advancing electric mobility and core technologies. He expressed his vision to put an end to the era of internal combustion engines in automobiles and to play a pivotal role in India's transformation into a global EV hub. In the past, Ola Electric raised over $200 million in January of the previous year from investors like Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss, and others, valuing the EV manufacturer at $5 billion. The company competes with various players in the EV industry, such as Ather Energy, Okinawa Autotech, Ampere EV by Greaves, Hero Electric, and TVS Motor Company. Ola Electric is also venturing into the production of electric cars, putting it in competition with companies like Tata Motors and Mahindra & Mahindra, as well as global giants such as Tesla and Hyundai. Notably, Ola Electric was the sole Indian EV company selected by the government for its Production-Linked Incentive (PLI)-Advanced Chemistry Cell (ACC) Scheme, with a maximum capacity of 20 gigawatt hours (GWh). This initiative is aimed at bolstering India's self-reliance in the EV value chain. Ola is actively establishing a Li-ion cell manufacturing facility near its Futurefactory in Krishnagiri, with an initial capacity of 5 GWh in Phase I, set to scale up to 100 GWh at full capacity. The company has invested significantly in advancing cell technology and plans to operate its Gigafactory in Krishnagiri, capable of large-scale indigenous cell manufacturing, by early next year. Recently, Ola Electric expanded its scooter portfolio, introducing five products with a price range of Rs 89,999 to Rs 0.14 million. These scooters, part of Ola's Gen2 platform, offer diverse options across various price points in the EV market. Ola has also unveiled a motorcycle lineup, slated for release by the end of next year, featuring models named Diamondhead, Adventure, Roadster, and Cruiser, all designed to meet high global standards. While Ola Electric reported an impressive operating revenue of Rs 3.73 billion during the 2021-22 fiscal year, compared to just Rs 8.6 million in the previous year, it also saw a fourfold increase in losses, amounting to Rs 7.84 billion in FY22. Nonetheless, the company continues to dominate the EV two-wheeler segment and maintains a strong market leadership position, with around 19,000 units registered in August, representing a remarkable year-on-year growth of over 400 per cent and sustaining a market share of approximately 30 per cent.

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