The Bengaluru-based firm had on September 7 closed a $140 million equity investment round led by Singapore’s sovereign fund Temasek, which valued the electric scooter manufacturer at $5.4 billion. ET had reported in May that Ola Electric was looking to raise about $300 million in equity and debt fundraise.
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Ola Electric will use the funds to set up its first lithium-ion cell manufacturing facility in Tamil Nadu, as well as expand the firm’s EV business, it said in a statement. The firm did not reply to requests for comment on the debt component of the overall raise.
“We are committed towards developing core technologies in EVs and cell, and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility,” said cofounder and chief executive Bhavish Aggarwal. “Our investors and lenders have shown deep faith in Ola’s vision, and we thank them for the constant support and encouragement.”
On August 15, the firm launched a new scooter model, the Ola S1 X, and said it plans to launch electric bikes in four variations by the end of 2024. A few days earlier, rival Ather had launched an entry-level electric scooter model called the 450S.
In January 2022, Ola Electric had raised $200 million from Tekne Private Ventures and Alpine Opportunity Fund, among others, at a $5 billion valuation. The firm is now looking to list on the public markets by next year.
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In September, Ather Energy announced a Rs 900 crore fundraise led by two-wheeler major Hero MotoCorp and Singaporean sovereign wealth fund GIC.Ola Electric reported its net loss widened to Rs 784.15 crore in FY22, from Rs 199.23 crore in FY21. Operating revenue hit Rs 373.42 crore in FY22, much higher than the Rs 86 lakh in the year-ago period. Though the firm is yet to file its audited FY23 financials, a Reuters report said it had recorded an operating loss of $136 million (Rs 1,131 crore) on a revenue of $335 million (Rs 2,785.9 crore) in FY23.
