Ola Electric, the electric mobility arm of Ola Cabs, has successfully raised a whopping Rs. 3200 crores in a recent equity fundraise, with contributions from existing investor Temasek and project debt from the State Bank of India (SBI). This substantial capital infusion will be allocated towards two major initiatives: the establishment of a lithium-ion cell manufacturing facility and the expansion of Ola Electric’s electric two-wheeler business.
Ola Electric has been committed to providing eco-friendly transportation solutions and has consistently introduced new products to meet the increasing demand. One of its latest additions to the electric scooter lineup is the S1X, priced from Rs. 89,999/- (ex-showroom).
The equity fundraise was spearheaded by Temasek, a renowned Singaporean state investor, which contributed approximately $90 million to Ola Electric. Additional funding came from various family offices, resulting in a cumulative investment of Rs. 3200 crores.
It’s worth noting that Ola Electric’s valuation in this funding round was pegged at $5.4 billion, slightly lower than the initially sought $7-8 billion. Nonetheless, this financial injection solidifies Ola Electric’s position as it gears up for an eagerly anticipated initial public offering (IPO), tentatively scheduled for early 2024.
Ola Electric is actively working on establishing a lithium-ion cell manufacturing facility in India, initially designed with a capacity of 5 gigawatt-hours (GWh). Over time, the facility will undergo significant scaling to achieve a full capacity of 100 GWh.
In August 2022, Ola unveiled an electric car set for a 2024 launch, although the launch timeline may be subject to potential delays. In addition to electric cars, the company has also showcased multiple electric motorcycle concepts, including cruiser, naked bike, scrambler, adventure bike, and more.
Bhavish Agarwal, the Founder and CEO of Ola Electric, expressed his optimism regarding the company’s growth and popularity, particularly after the successful launch of the S1 X+. During the festive season, Ola Electric experienced a surge in sales, with a scooter sold every 10 seconds, representing nearly 2.5 times the sales compared to the previous year.
