Ola Electric, a prominent electric scooter manufacturer, has recently concluded a funding round, securing $300 million in investment. According to sources in merchant banking, the company’s valuation is expected to reach $6 billion following this funding round.
In January 2022, Ola Electric raised $200 million at a $5 billion valuation from investors such as Tekne Private Ventures, Alpine Opportunities Fund, and Edelweiss. With this latest funding, the company has accumulated close to $900 million through multiple rounds.
The primary objective of this funding is to significantly increase the company’s electric two-wheeler production capacity from 0.5 million to 2 million units per year.
The report also indicates that the funds raised will support the establishment of an advanced cell chemistry battery plant. Ola Electric is eligible for incentives under the production-linked incentive scheme for this initiative.
Additionally, the company is planning to venture into electric passenger car manufacturing, with potential implementation as early as next year.
According to the report, a leading sovereign fund company led the latest funding round, while SoftBank Group, one of the company’s initial major investors, did not participate. Ola Electric envisions building a two-wheeler plant with an annual capacity of 10 million units in the future.
Furthermore, the company aims to increase its cell-making battery capacity from the current 20 gigawatt-hours (GWH), which already qualifies for PLI incentives, to 100 GWH in order to meet its internal demand.
In April of this year, based on data from VAHAN, Ola Electric achieved its highest sales registrations since its launch, selling 21,560 electric scooters and capturing 34% of the market.
In conclusion, Ola Electric has successfully raised $300 million in its latest funding round, propelling its valuation to an estimated $6 billion. The funds will be utilized to augment the company’s electric two-wheeler production capacity and establish an advanced cell chemistry battery plant.
Ola Electric also has plans to enter the electric passenger car market and expand its battery capacity in the future. With a significant market share and strong sales performance, Ola Electric continues to make strides in the electric vehicle industry.
