0

0

0

0

0

0

0

0

0

This article is more than 5 month old.

Ola Electric plans to raise $1 billion for expansion in EV space

Mini

Ola Electric raised $100 million from the state-run Bank of Baroda in July for the first phase of construction of a factory, which the company claimed would be the largest electric two-wheeler manufacturing set-up in the world.

Ola Electric plans to raise $1 billion for expansion in EV space
Ola Electric Mobility is in talks to raise $1 billion from various sources, including financial investors, private equity, and strategic traders, it has been reported. Ola has hired JP Morgan for the job and the investment bank has reportedly reached out to private equity firms and large investors, a report said.
"While the company has a comfortable liquidity position currently, it will need to ensure a comfortable debt-to-equity ratio to fund expansion and gain market share in the tightly contested space for electric two-wheeler space, which is expected to see a plethora of new launches," a source told Hindustan Times.
Ola Electric raised $100 million from the state-run Bank of Baroda in July for the first phase of construction of a factory, which the company claimed would be the largest electric two-wheeler manufacturing set-up in the world. It was hailed as the largest long-term debt financing agreement in the Indian EV industry.
"Today’s agreement for long-term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world's largest two-wheeler factory in record time," Bhavish Aggarwal, Chairman and CEO of the Ola group, had said.
Ola Electric
Ola Electric, set up in 2017 is a fully owned unit of Ola, the ride-sharing start-up and owned by parent company ANI Technologies Pvt. Ltd. Aggarwal has bought the majority stake in Ola Electric from ANI Technologies.
Ola Electric became a unicorn startup by 2019, two years after its launch.
Among its fundraising rounds, Ola Electric first raised Rs 400 crore from Tiger Global Management and Matrix Partners India, which are large minority investors in Ola's parent company. The company famously raised $250 million from Japan’s SoftBank Group Corp.
Both Ola and Ola electric have plans to go public next year but there hasn't been any date fixed for the Initial Public Offering, said Aggarwal in an interview with CNBC.
He also added that both his ride-sharing start-up and two-wheeler electric company have the necessary capital and balance sheets to go public.
next story