Ola Electric, India’s largest e-scooter maker and backed by SoftBank, has reported an operating loss of $136 million on a revenue of $335 million in the last financial year that concluded in March, according to a recent report. The loss figure for FY23, which comes as the company prepares for an IPO of up to $700 million, was not previously disclosed or filed with Indian authorities. Ola Electric has until September to file its previous year’s earnings with the authorities.
In June 2022, Ola Electric stated that it was on track to exceed a $1 billion run rate by the end of that year, expressing confidence in its future forecast. However, the latest financial numbers indicate that the publicly disclosed revenue goal was not met.
For the fiscal year 2022/23, Ola Electric recorded a revenue of $335 million with over 150,000 unit sales, but it also experienced an operating loss of $136 million. In the same year, the company sold approximately 21,400 electric scooters.
Since its entry into the market in late 2021, Ola Electric has quickly become the leader in India’s e-scooter market, holding a 32% share and competing with companies like Ather Energy, TVS Motor, and Hero Electric. Last year, the company was valued at $5 billion and has raised close to $800 million from investors since 2019.
Earlier this year, Ola Electric had ambitious projections, anticipating its revenue to quadruple to $1.5 billion in 2023-24, which would also mark its first profitable year. However, the reduction in government incentives on e-scooters by the Indian government in May has led analysts to believe that growth plans may need to be revised for Ola and other players in the market.
Despite the challenges posed by the incentives cut, Ola Electric remains optimistic about achieving operational profitability this year, a crucial factor watched closely by potential IPO investors, as per sources. The company’s existing investors are reportedly bullish on its market leadership in the e-scooter segment.
Ola Electric produces its e-scooters in Tamil Nadu at what it claims is the “world’s largest 2-wheeler factory,” with a capacity to produce 10 million units annually. The company has been investing substantial amounts in expanding its factory and service centers to cater to the increasing demand for its products.
