Bhavish Aggarwal-led Ola Electric has closed an INR 3,200 Cr ($384 Mn) funding round, which was a mix of equity and debt. While the equity part was led by Temasek, the debt part of the round was led by the State Bank of India.
The company said it will use the fresh funds for the expansion of its electric vehicle (EV) business and to establish India’s inaugural lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
“We are committed to developing core technologies in EVs and cell and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility,” Bhavish Aggarwal, founder and chief executive officer of Ola Electric, was quoted saying.
Earlier, it was reported that the two-wheeler EV manufacturer signed an agreement to raise $140 Mn from Temasek and existing investors.
The fundraise comes ahead of Ola Electric’s public listing. While the startup was initially said to be eyeing a listing before the general elections in the country next year, it has reportedly accelerated its IPO timeline now. The company was said to be aiming to submit its draft red herring prospectus (DRHP) for its $700 Mn IPO by the end of October.
An Ola Electric executive urged external advisers, including Kotak, ICICI, Bank of America, and Goldman Sachs, to prioritise meeting a tight five-week deadline for this milestone, as reported by Reuters.
Previous reports suggested that Ola Electric aimed for a market capitalization of $10 Bn through its IPO. However, valuation experts expressed reservations, deeming such a valuation as unrealistic and unsustainable.
This fundraising comes amid various allegations concerning Ola Electric’s escooter quality, after-sales services, and potential misappropriation of FAME-II subsidies. Despite these challenges, Ola Electric has managed to emerge as the top-selling electric two-wheeler manufacturer in recent months.
While the company is yet to file its FY23 financial statement, Ola Electric’s operating loss reportedly stood at $136 Mn on a revenue of $335 Mn in FY23, missing its publicly disclosed revenue goal.
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