IPO-bound Ola Electric has raised $140 million from existing investors including Singapore-based venture capital firm Temasek, sources close to the development confirmed to CNBC-TV18. While Temasek is infusing around $90 million, the firm will raise the remaining amount from family offices.
The investment round has been closed and Ola will be receiving the funds within the next four-five days. This is part of the on-going round wherein Ola Electric is planning to raise up to $250 million.
Post the fundraise, the company has been valued at $5.4-5.5 billion, sources added. In January 2022, Ola Electric raised around $200 million from Tekne Private Ventures, Alpine Opportunity Fund and Edelweiss, at around $5 billion valuation.
The e-scooter maker will also go for another round of fundraising before it files papers for an up to $1 billion IPO planned for late 2023. It has also appointed Bank of America as one of its lead managers on the IPO, in addition to Goldman Sachs, Citi and local banks Kotak, Axis and ICICI Securities.
With close to a billion-dollar annual revenue run rate, Ola says it is the market leader in India in e-scooters, selling around 30,000 a month, priced around $1,600 each. The company, which sold around 1,50,000 EVs in 2022 has been building on its plan to develop core technologies like cell manufacturing, and is looking to expand its product portfolio across segments of two-wheelers and four-wheelers.
In 2023 and 2024, the company aims to launch many more two-wheelers EV products – a mass-market scooter, a mass-market motorcycle, and multiple premium motorcycles, Aggarwal said.
According to Bhavish Aggarwal, founder and chief executive officer of Ola Electric, the company is working towards the Mission Electric with an aim to have all two-wheelers sold in India by the end of 2025 to be electric, and all cars sold in India by 2030 to be electric.
A Reuters report had said that Ola Electric recorded an operating loss of Rs 1,119 crore ($136 million) on a revenue of Rs 2,740 crore ($335 million) in the last financial year which concluded in March 2023, missing its publicly disclosed revenue goal.
However, the company's Chief Marketing and Revenue Officer Anshul Khandelwal had told CNBC-TV18 on July 28 that reports of Ola Electric making losses is extremely speculative, asserting that the company is growing very fast.
Asserting that the company is growing fast month-on-month, Khandelwal said Ola Electric has achieved a 40 percent market share in the Indian electric two-wheeler segment.
First Published: Sept 7, 2023 4:02 PM IST
