In its latest announcement, Ola Electric stated that it has raised around ₹ 3,200 crore through debt and equity financing. The project loan from State Bank of India and marquee investors led by Temasek provided this finance. The Bengaluru-based company’s valuation increased to $5.5 billion from $5 billion before to the investment round, which includes stock, according to sources.
It is anticipated that the money raised will lead to an interim event and clear the path for an IPO, which may bring in between $800 million and $1 billion.
According to a source acquainted with the business plan, Ola intends to go public soon. It is anticipated that the IPO will rank among the biggest for automobiles in India. DIG Investment and Tiger Global Management are reportedly among the other investors in the investment round alongside Temasek.
The money raised will be used to build India’s first lithium-ion (Li-ion) cell manufacturing facility in Krishnagiri (Tamil Nadu) and grow Ola’s electric vehicle (EV) business.
With the help of these funds, Ola Electric will also be able to build the Gigafactory more quickly, launch electric bikes and vehicles more quickly, and increase the growth of its two-wheeler manufacturing capacity.
“At Ola, our vision is to end the ICE (internal combustion engine) age in automobiles, and our upcoming Gigafactory will be a big leap in India’s journey towards becoming a global EV hub,” stated Bhavish Aggarwal, the company’s founder and CEO. We are dedicated to creating the fundamental technologies for EVs and cells, and we are fast increasing production to hasten the shift to more environmentally friendly transportation. Our lenders and investors have demonstrated a strong belief in Ola’s ambition.