SUMMARY
The company is expected to unveil it later this month
IPO-bound Ola Electric worked for a couple of years to developing this product, aligning with its broader strategy to venture into the commercial vehicle sector
Ola Electric is gearing up to make several significant announcements in the coming months
IPO-bound Ola Electric has reportedly finalised its plans to launch its electric autorickshaw, likely to be named Raahi, directly targeted at consumers. The company is expected to unveil it later this month.
Ola Electric worked for a couple of years to develop this product, aligning with its broader strategy to venture into the commercial vehicle sector, ET reported.
The upcoming vehicle will enter the segment of electric three-wheelers, competing against established models such as Mahindra Treo, Piaggio Ape e-city and Bajaj RE.
Mahindra, Piaggio, and Bajaj offer their electric autorickshaws at prices ranging from INR 2 Lakh to over INR 3.5 Lakh, varying based on the specific model and additional features.
In 2023, more than 580,000 electric three-wheelers were sold, marking a 66% increase compared to the sales figures of 2022, as per Vahan data. Additionally, electric three-wheelers accounted for over 50% of the total three-wheeler sales in 2023.
A brainchild of Ola Cabs cofounder Bhavish Aggarwal, Ola Electric is an EV manufacturer that currently retails a portfolio of five scooter models. As per its DRHP, the company operates a full-fledged omnichannel distribution network that comprises 935 experience centres, including 414 service centres, at the end of October 2023.
Ola Electric is gearing up to make several significant announcements in the coming months, particularly regarding the gigafactory, before its listing. The launch of the e-autorickshaw aligns with this strategy, and internally, the aim is to launch it within the next two weeks or so.
Back in December, the company filed its draft red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for an INR 7,250 Cr initial public offering (IPO). As per the DRHP, the IPO comprises a fresh issue of INR 5,500 Cr.
The IPO will comprise an offer-for-sale (OFS) component of INR 1,750 Cr. In total, the public issue will comprise an OFS component of up to 9.5.1 Cr shares. Cofounder CEO Bhavish Aggarwal and major investors such as Softbank, Temasek, Tiger Global, Alpha Wave, Tekne Capital, and Matrix Partners are slated to participate in the OFS.
In October, Ola Electric also raised a INR 3,200 Cr funding round, in a mix of equity and debt, that saw participation from Temasek, SBI and others.
