Ola Electric, the electric vehicle manufacturer, is gearing up for a landmark Initial Public Offering (IPO), marking the first such event by an automaker in India in over two decades since Maruti Suzuki’s offering in 2003.
The company aims to go public by the end of fiscal year 2024, seeking to raise between $700 million and $800 million at a valuation of $7-8 billion. The IPO will be managed by notable financial institutions, including Kotak Mahindra Bank, Bank of America, Citibank, and Goldman Sachs, and will consist of fresh equity and offers for sale by some existing investors. Ola Electric is backed by prominent investors like Temasek from Singapore and SoftBank from Japan.
Recently, Ola Electric raised Rs 3,200 crore, largely for developing its EV manufacturing and battery units at its gigafactory in Tamil Nadu, which is expected to be operational by early 2024. This facility is key to Ola Electric’s goal of environmental decarbonization.
Despite leading India’s electric two-wheeler market, Ola Electric reported a net loss of Rs 1,472 crore in FY23, even as its consolidated revenue increased significantly. Under Bhavish Aggarwal’s leadership, the company has transitioned from a cab aggregator to a top EV maker. Since launching its first electric scooter in 2021, Ola has seen a sharp increase in production and sales, offering models like the Ola S1X, S1 Pro, and S1 Air.
However, the company faces challenges with safety concerns, including a voluntary recall of 1,441 vehicles and issues reported by customers on social media. Despite these hurdles, Ola Electric remains a key player in India’s EV market.
