Ola Electric, an electric vehicle manufacturer, has recently received a significant amount of funding amounting to Rs 3,200 crore ($385 million) through a combination of equity and debt, with notable contributions from investors led by Temasek and the State Bank of India (SBI).
This infusion of capital will be used to support Ola's efforts in expanding electric vehicle projects and establishing India's first lithium-ion cell production unit in Krishnagiri, Tamil Nadu. The company's goal is to start operations with an initial capacity of 5-gigawatt hours in phase I, with plans to gradually increase it to an impressive 100 gigawatt hours.
Ola is planning to introduce a new line of motorcycles, in addition to their existing scooters, which are scheduled to be launched by the end of the upcoming year.
In the past few months, Ola Electric has managed to secure a significant amount of funding at different stages. Prominent investors, including Temasek, Blue Investments, DIG Investments, Tiger Global, Tekne Private Ventures, and Ashutosh Vinayak Joshi, have collectively invested $300 million into this Bengaluru-based company.
Based on evaluations conducted by TheKredible, the current valuation of the company is estimated to be around Rs 44,410 crore or $5.4 billion after the allotment. This represents a noteworthy increase compared to the $5 billion valuation reported in January of the previous year. This funding round allows Ola Electric to reach a significant milestone of surpassing $1 billion in total raised capital, encompassing both equity and debt.
According to data obtained from TheKredible, SoftBank emerges as the foremost external stakeholder, holding a significant 23.6% stake. Following closely are Tiger Global, Matrix, and several other investors. Furthermore, prior to the Series E funding round, Bhavish Aggarwal, the founder and CEO, retained a substantial 36.6% stake.
Despite Ola Electric not having released its annual report for FY23 yet, the company has reported operating revenue of Rs 373 crore during FY22, which is a significant increase from Rs 0.86 crore in FY21. However, due to escalated manufacturing expenses and additional overhead costs, there has been a substantial rise in losses, amounting to Rs 784 crore in FY22.
In conclusion, Ola Electric's recent funding injection strengthens its position in the electric vehicle sector, offering promising advancements in production and innovation for a more environmentally friendly future.
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