Ola Electric, the electric scooter manufacturer led by Bhavish Aggarwal, is reportedly nearing the completion of a funding round after several months of negotiations.
According to sources cited by the ET, Temasek, Singapore’s state-owned private equity firm and an existing investor in Ola Cabs and Ola Electric, has committed to investing around $100 million in the company.
In addition, Aggarwal is said to be in discussions with Catamaran Ventures, the investment firm founded by Infosys co-founder NR Narayana Murthy. The exact amount of investment from Catamaran Ventures remains uncertain, but reports and industry speculation suggest it could be between $100 million and $150 million.
SoftBank, Ola Electric’s largest institutional stakeholder, is unlikely to participate in the upcoming funding round. While there were previous speculations about the involvement of Middle Eastern funds or global private equity players, those possibilities seem less likely now.
Ola Electric aims to raise $300 million in the ongoing funding round, leaving approximately $50 million available for another investor to contribute.
In a recent Bloomberg interview, Catamaran chairman MD Ranganath stated that the venture capital firm would prioritize investments in the manufacturing sector. Catamaran also has a focus on renewable energy, precision engineering, and deep tech for potential investments.
Ola Electric aligns with these investment priorities as it not only manufactures electric scooters but also has plans to produce battery cells, having made significant investments in cell development in recent months.
Previously, Ola Electric was reported to have secured $300 million in funding from undisclosed investors. The latest reports indicate that the funding round is still ongoing, with Temasek and Catamaran expected to lead the substantial round.
In late May, media reports highlighted Ola Electric’s plans to utilize the incoming funds to ramp up its manufacturing capacity to 2 million scooters per year, a fourfold increase from the current 500,000 units.
Ola Electric’s last funding round took place approximately 18 months ago, raising $200 million at a valuation of $5 billion in January 2022. Sources suggest that the company’s valuation in the upcoming funding round could range between $5 billion and $6 billion, consistent with earlier media reports from May.
The startup continues to dominate the electric two-wheeler market in India, as evidenced by a record 28,438 registrations in May 2023, representing a growth of over 29% from the 21,991 units recorded in April, according to data available on the Vahan portal as of June 1.
Ola Electric stated that it sold 35,000 vehicles in May.
The government has been investigating Ola Electric, along with several other industry players, for allegedly separately billing their e-scooter chargers and proprietary software as accessories to claim FAME-II subsidy. Ola Electric is reportedly expected to refund INR 130 crore to 100,000 Ola S1 Pro customers.
