Currently, Ola Electric is running several pilots involving charging solutions, battery swapping stations, and deploying vehicles across two, three and four-wheeler segments.
Ola Electric did not disclose the amount invested by Ratan Tata.
The investment will be used by the firm to work on its ongoing operations.
Ratan Tata, Chairman Emeritus of Tata Sons, has invested an undisclosed amount in Ola Electric Mobility as part of its Series A round. Ola says that Ratan Tata’s investment in Ola Electric will bring his deep experience and mentorship to Ola’s ambitions to make electric mobility viable at scale.
“The electric vehicle ecosystem is evolving dramatically every day, and I believe Ola Electric will play a key role in its growth and development. I have always admired the vision of Bhavish Aggarwal and I’m confident that this will be part of yet another important strategic move into this new business area,” Ratan Tata said in a statement.
Cab hailing service Ola’s electric vehicle division ‘Ola Electric Mobility Pvt Ltd (Ola Electric)’ has raised funds from Ratan Tata, Chairman Emeritus of Tata Sons, as part of its Series A round of funding. Ratan Tata is also an early investor in ANI Technologies Pvt Ltd, Ola’s parent company.
Ola Electric has also raised INR 400 Cr from Tiger Global, Matrix India and Ola’s other early investors.
Ola Electric Mobility was set up as an independent entity in March 2019. It is currently running several pilots involving charging solutions, battery swapping stations, and deploying vehicles across two, three and four-wheeler segments.
Most recently, Ola raised $300 Mn from South Korean automaker Hyundai Motors along with its affiliate Kia Motors. As part of the deal, Hyundai plans to introduce its electric vehicles in the cab fleet of Indian ride-hailing company Ola by 2021.
The Indian electric vehicle segment is currently ripe for disruption. With the continuous push from the government to ensure 30% electric mobility in India by 2030, both local and foreign companies are making their way into this opportunity. Earlier this week, UK-based electric bike company and lifestyle brand GoZero Mobility also announced plans to enter India.
Ola Electric said that Tata’s investment is a significant endorsement of the company’s approach to developing an electric mobility ecosystem, including innovations in charging infrastructure, swapping models, and market-appropriate products.
The company was first established to enable Ola’s electric mobility pilot program in Nagpur. In 2018, Ola subsequently announced ‘Mission: Electric’ to have 1 Mn electric vehicles running on Indian roads by 2021.