In a significant move toward its initial public offering (IPO), Ola Electric Mobility, under the leadership of Bhavish Aggarwal, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The IPO aims to raise INR 5,500 Cr through the issuance of new shares, with existing investors participating in a substantial offer-for-sale (OFS) component, totaling over 10 Cr equity shares.
Impressive Q1 FY24 Performance:
The latest financials reveal that Ola Electric achieved remarkable sales of INR 1,242.7 Cr in the first quarter of FY24, nearly 50% of its total revenue in FY23. This robust performance follows the startup’s exceptional growth in electric sales in 2022.
Financial Highlights:
- FY23 Sales: INR 2,630.9 Cr, a 605% increase from INR 373 Cr in FY22.
- FY24 Q1 Sales: INR 1,242.7 Cr, reflecting the startup’s strong growth trajectory.
Revenue Sources and Other Income:
Ola Electric’s primary revenue source is two-wheeler sales. Including other income, the startup reported a total revenue of INR 1,278.6 Cr in FY24 Q1. The total income in FY23 reached INR 2,782.6 Cr compared to INR 456.2 Cr in the previous fiscal year.
Expenditure Breakdown:
- Procurement Cost: In FY24 Q1, the startup spent INR 1,109.4 Cr on materials, constituting 76% of total expenditure. In FY23, procurement expenses rose to INR 2,570.4 Cr, a 434% increase from the previous fiscal year.
- Employee Benefit Expenses: Ola Electric allocated INR 94.3 Cr for employee salaries in Q1 FY24, with FY23 expenses reaching INR 426.7 Cr.
- Advertising Expenses: Spending INR 13.1 Cr on advertising in Q1 FY24, the startup saw a 24% increase from INR 49.4 Cr in FY23.
Funding and Investors:
Founded in 2017, Ola Electric entered the unicorn club in just two years after securing a $250 Mn investment from SoftBank. In October, the company raised INR 3,200 Cr ($384 Mn) in a funding round led by Temasek and the State Bank of India.
IPO Anticipation and Market Competition:
Ola Electric, having raised close to a billion dollars in funding, is set to join the IPO wave. Competing against industry players like Ather, Bounce Infinity, Hero, Revolt, TVS, and Okinawa, the startup continues to be a significant force in the electric vehicle (EV) space.
