Ola Electric plans to build a cell manufacturing factory and expand its electric two-wheeler business
Ola Electric has raised Rs. 3200 crores through an equity fundraise with participation from existing investor Temasek and project debt from the State Bank of India (SBI). This substantial capital injection will be directed towards two significant initiatives – the establishment of a lithium-ion cell manufacturing facility and the expansion of Ola Electric’s two-wheeler business.
Ola Electric has been consistently introducing new products to meet the demand for eco-friendly transportation solutions. One of its latest additions to the electric scooter lineup, the S1X which is priced from Rs. 89,999/- (ex-showroom).
The equity fundraise was led by Temasek, a prominent Singaporean state investor, which injected approximately $90 million into Ola Electric. Additional contributions came from various family offices, collectively amounting to Rs. 3200 crores.
It is worth noting that the valuation of Ola Electric in this round settled at $5.4 billion, a figure lower than the $7-8 billion initially sought by the company. However, this funding round provides Ola Electric with a significant financial boost, bolstering its position as it prepares for an eagerly awaited initial public offering (IPO), tentatively set for early 2024.
The company is in the process of establishing a lithium-ion cell manufacturing facility in India, which, in its initial phase, will have a capacity of 5 gigawatt-hours (GWh). Over time, the facility will undergo scaling to achieve a full capacity of 100 GWh.
In August 2022, Ola unveiled an electric car which is initially scheduled for a 2024 launch. However, the timeline for this launch may be subject to delays. Additionally, the company has showcased multiple electric motorcycles concepts including cruiser, naked bike, scrambler, adventure bike, etc.
Ola Electric’s founder and CEO, Bhavish Agarwal, expressed his optimism about the company’s growth and its popularity following the launch of the S1 X+. He shared that sales have surged during the festive season, with a scooter being sold every 10 seconds and nearly 2.5 times the sales compared to the previous year.
