In a surprising revelation, Ola Electric, the leading player in the Indian electric two-wheeler market, has reportedly sold over 8,200 escooters to its promoter group entity ANI Technologies between April 2022 and December 2023. This news comes amid the company’s push to revive Ola bike taxi services in Bengaluru in the latter half of the previous year.
Despite the substantial sales to its parent company, Ola Electric omitted any mention of related party transactions in its Draft Red Herring Prospectus (DRHP) filed for an Initial Public Offering (IPO) exceeding INR 7,000 Crores at the end of December 2023. The DRHP included financial statements only up to June 30, 2023.
A spokesperson from Ola Electric confirmed the sales, stating, “Till date, 8,206 Ola Electric scooters have been registered under ANI Technologies for its ebike, parcel, and other delivery services. In total, 2.17% of our overall registrations till date have been under ANI Technologies.”
However, sources suggest that the actual number of escooters sold to Ola Cabs’ parent company and its subsidiaries might be higher, reaching at least 12,000 units between April 2022 and December 2023. An email sent to Ola Electric for clarification remained unanswered at the time of publishing.
Notably, Ola Electric’s total vehicle registrations exceeded 3 lakh units during the April 2022 to December 2023 period, with the highest monthly registrations recorded in December 2023 at 30,000 units, according to Vahan data.
In a bid to expand its bike taxi service, Ola Cabs had previously announced plans to collaborate with the state-backed Open Network for Digital Commerce (ONDC) to provide last-mile logistics services, including food delivery, grocery shopping, and pharmaceuticals, all powered by Ola Electric’s two-wheelers.
Despite being a front-runner in the electric two-wheeler market, Ola Electric remains heavily reliant on government subsidies, posing a significant risk to its future growth. As the company continues to explore avenues for expansion and diversification, its strategic moves in the coming months will be closely watched by industry observers.
