Ola Electric, the electric vehicle manufacturing division of Ola, has undergone a transition from a private company to a publicly listed entity as part of its preparations for an upcoming initial public offering (IPO). The company, established in 2017, has also modified its name to Ola Electric Mobility Limited, as indicated in regulatory filings. With plans for a public listing by the close of 2023, the electric two-wheeler manufacturer boasts a claimed 35% market share of electric two-wheelers in India and operates the largest two-wheeler factory in Krishnagiri, Tamil Nadu. Ola Electric has initiated the construction of a 5 GWh lithium-cell manufacturing plant earlier this year.
In October, the company secured Rs 3,200 crore in a funding round featuring a mix of equity and debt, led by Temasek and the State Bank of India. The funds are intended to support the expansion of its ‘Gigafactory.’ Ola Electric’s Founder and CEO, Bhavish Aggarwal, has expressed the company’s consideration of establishing a four-wheeler factory to consolidate its manufacturing facility as a comprehensive hub for all Ola Electric components. Valued at $5.4 billion post-money as of September 2023, Ola Electric disclosed a consolidated loss of Rs 784.15 crore for FY22, despite a substantial 4.2X year-on-year increase in consolidated income to Rs 456.26 crore. The surge in revenue was primarily driven by the sale of e-scooters, with approximately 1.5 lakh scooters sold in FY22. Earnings for FY23 are yet to be reported.
According to market research and data platform Tracxn, Bhavish Aggarwal holds the majority of shares in Ola Electric, accounting for nearly 36.6%, followed by SoftBank at 23.6% and Tiger Global at 6.29%. In the two-wheeler segment, Ola Electric faces competition from Ather Energy, which holds the second-largest market share. Due to government cuts in the FAME II subsidy, electric scooter manufacturers in India have been compelled to raise prices.
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