Ola Electric is planning to expand its electronic vehicle space by raising $1 billion. To raise the required funding, the startup has also collaborated with JP Morgan who is in touch with different equity firms and international investors to execute the plan soon.
Ola Electric to Expend its EV Space!
In July 2021, Ola initiated the first phase of constructing the largest two-wheelers manufacturing company by raising $100 million from the Bank of Baroda.
It was considered the largest long-term debt financing agreement in the Indian EV industry.
Talking about Bank of Baroda debit financing, Bhavish Aggarwal, Chairman and CEO of the Ola group, had said, “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,”
To accelerate its EV operations further, Ola Electric Mobility is in advanced talks to raise $1 billion from various sources, including financial investors, private equity, and strategic traders, as per the reports. JP Morgan, the international investment bank, has been given this responsibility by Ola to reached out to private equity firms and large investors.
A person who has the detail of internal matter but requested not to reveal his identity, said to Hindustan Times, “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.”
About Ola Electric Growth
Ola Electric unit was founded in 2017 by the online ride service provider Ola, the parent firm of the EV unit. The startup joined the unicorn club in 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.
Later, The firm closed a $250 million funding invested in Japan’s SoftBank Group Corp. Ola and Ola Electric aim to start their public offerings in 2022 but the exact timeline is not yet decided.
When asked about the public offering preparations, the company CEO revealed that both Ola and Ola Electric both have the required funds and balance sheets to go public.