Ola Electric Charges Forward with INR 3,200 Crores Funding Boost for Electric Mobility Revolution

In a groundbreaking move, Ola Electric has successfully raised a staggering INR 3,200 crores through an equity fundraise, with enthusiastic participation from existing investor Temasek and significant project debt courtesy of the State Bank of India (SBI). This substantial financial infusion has been earmarked for two pivotal ventures: the establishment of a cutting-edge lithium-ion cell manufacturing facility and the ambitious expansion of Ola Electric's two-wheeler enterprise.

Ola Electric has been at the forefront of innovation in the eco-friendly transportation realm, consistently introducing new products to meet the surging demand for sustainable mobility solutions. One of their latest offerings, the electric scooter S1X, has hit the market with an attractive starting price of INR 89,999 (ex-showroom).

The driving force behind this equity fundraise was Temasek, a notable Singaporean state investor, which injected approximately $90 million into Ola Electric. The funding drive also saw significant contributions from various family offices, collectively amassing a substantial INR 3,200 crores.

It's important to highlight that Ola Electric's valuation in this round has settled at $5.4 billion, a figure slightly below the initial $7-8 billion target set by the company. Nevertheless, this funding round provides Ola Electric with a formidable financial foundation, reinforcing its position as it gears up for a highly anticipated initial public offering (IPO), tentatively slated for early 2024.

The company is diligently working on the establishment of a cutting-edge lithium-ion cell manufacturing facility in India. In its initial phase, this facility will have a capacity of 5 gigawatt-hours (GWh), with ambitious plans for scaling up to achieve a staggering full capacity of 100 GWh.

Back in August 2022, Ola revealed plans for an electric car, initially scheduled for a 2024 launch, although potential delays could be on the horizon. Additionally, the company has teased several captivating electric motorcycle concepts, including cruiser, naked bike, scrambler, adventure bike, and more.

Bhavish Agarwal, the visionary founder and CEO of Ola Electric, exudes optimism about the company's exponential growth, particularly in the wake of the S1 X+ launch. He revealed that sales have surged during the festive season, with a scooter sold every 10 seconds, marking nearly 2.5 times the sales compared to the previous year. Ola Electric is undoubtedly riding the electrifying wave of the future.