Indian electric vehicle company Ola Electric Mobility has recently announced the successful acquisition of $50 million in debt financing from EvolutionX Cap, a debt financing platform established by DBS and Temasek. This achievement marks a significant step towards the company’s goal of revolutionising the electric vehicle industry in India.
The parent company of Ola’s EV business, Ola Electric Mobility, made public its filing of the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on December 22 last year. The company has proposed to raise up to Rs 5,500 crore through a fresh issue, along with an offer-for-sale component of 95.2 million shares. With this initiative, the Bengaluru-based company aims to achieve a valuation of $7-8 billion through its public offering.
Furthermore, company founder Bhavish Aggarwal has been actively engaged in presenting the IPO to global investors through a series of roadshows. This concerted effort reflects the company’s steadfast belief in the potential of its business to attract significant international interest and investment.
In alignment with its plans for expansion and development, Ola Electric Mobility has also disclosed its intention to inject Rs 500 crore into its wholly owned subsidiary Ola Electric Technologies Pvt Ltd (OET). According to the roC filings, OET is “engaged in the business of providing services across the electric vehicles value-chain, and manufacture and supply of electric vehicles.” The subsidiary plays a vital role, accounting for nearly 95% of the parent company’s net loss.
Significantly, the company’s aggressive investments are in line with its ongoing ambitions to enter the commercial EV segment. As reported in March, Ola Electric Mobility plans to introduce an electric auto rickshaw in direct competition with other major players in the electric three-wheeler segment. These strategic initiatives underline the company’s commitment to assertive growth in the electric vehicle market.
Additionally, Ola Electric Mobility has been actively working towards establishing its ‘gigafactory’ for the manufacturing of battery cells. As indicated, a substantial portion of the projected IPO proceeds, approximately Rs 1,226 crore, will be earmarked for the gigafactory, underscoring the significance of this forthcoming venture.
The company’s notable presence in the electric scooter segment has solidified its position as a formidable force in the market, boasting a market share of approximately 41%. This achievement serves as evidence of the company’s enduring commitment to progress and expansion in the electric vehicle industry.
In conclusion, Ola Electric Mobility’s recent accomplishments and strategic manoeuvres underscore its unwavering determination to establish itself as a dominant player in the Indian electric vehicle market. The company’s attainment of significant debt financing, coupled with its ambitious plans for an IPO and expansion, are clear indicators of its steadfast commitment to shaping the future of the electric vehicle industry in India.