Ola Electric Mobility Secures INR 410 Crore from EvolutionX Debt Capital, Backed by DBS and Temasek. Founder Bhavish Aggarwal is presenting the IPO to international investors, targeting a valuation of $7-8 billion.
Ola Electric Mobility Ltd, a company gearing up for an initial public offering (IPO) and known for its electric two-wheelers, has successfully raised INR 410 crore (approximately USD 50 million) through non-convertible debentures from EvolutionX Debt Capital, as revealed in regulatory filings with the Registrar of Companies (RoC).
EvolutionX Debt Capital, a financing platform established by DBS and Temasek, has previously supported Indian internet companies such as Udaan, Mensa Brands, PharmEasy, and LendingKart. Before this recent debt funding, Ola Electric Mobility had secured a USD 240 million debt financing from the State Bank of India in October 2023, which was part of a larger USD 384 million financing round that also included equity funding from Temasek, Singapore’s sovereign wealth fund.
At that time, Ola Electric Mobility was valued at USD 5.4 billion. According to data from Tracxn, the company has raised a total of about USD 1 billion in equity and debt funding so far. On December 22 of the previous year, Ola Electric Mobility submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi), proposing to raise up to INR 5,500 crore through a fresh issue, in addition to an offer-for-sale component of 95.2 million shares. The Bengaluru-based company is aiming for a USD 7-8 billion valuation through the public offering, based on information from bankers.
The company is still awaiting approval from Sebi for the IPO. Bhavish Aggarwal, the company’s founder, has been conducting a roadshow to present the IPO to international investors, as per sources familiar with the matter.
In a separate development, Ola Electric Mobility, the parent company of Ola’s electric vehicle (EV) business, plans to invest INR 500 crore into its wholly-owned subsidiary Ola Electric Technologies Pvt Ltd (OET), according to the latest RoC filings. According to the company’s DRHP, OET is involved in providing services across the electric vehicle value chain, and in the manufacture and supply of electric vehicles. It is a significant subsidiary, accounting for nearly 95% of the parent company’s net loss.
The INR 500-crore investment in OET, which could be made in one or more instalments in the form of either equity or debt, follows Ola Electric Mobility’s plans to venture into the commercial EV segment. The company is planning to launch an electric auto rickshaw, which will be sold directly to consumers. The new vehicle is expected to compete with the likes of Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the electric three-wheeler segment.
Ola Electric Mobility has been developing the product for a few years as part of its broader plans to enter the commercial vehicle business. According to data from the Vahan portal, Ola Electric holds about 41% market share in the electric scooter segment, while TVS Motor, Bajaj Auto, and Ather Energy hold around 18%, 14%, and 11% share, respectively.
The company has also been working on establishing its ‘gigafactory’ to manufacture its battery cells and plans to allocate INR 1,226 crore from the anticipated IPO proceeds for the gigafactory.
