The country’s largest electric two-wheeler manufacturer, Ola Electric, is eyeing to launch an IPO (Initial Public Offering) for a total of $700 million in funding. The EV scooter maker, which is the sister company of Bengaluru-based ride-hailing firm Ola Cabs, founded by Bhavish Aggarwal, is looking to go public, reported Reuters. According to reports, the company is looking at a valuation of around $10 billion for its IPO.
According to Reuters, the company executive has asked bankers and lawyers in a message not to schedule any ‘extended leaves to assure availability’. It has been reported that the executive has asked external advisers on the IPO to give “utmost priority” to meet a five-week deadline in an email sent to its bankers and lawyers. These advisers included the investment banking divisions of Indian banks Kotak and ICICI as well as foreign banks Bank of America and Goldman Sachs.
It has also been reported that the Ola Electric IPO project has been internally named as “Project Himalaya”. Following its filing, the Securities and Exchange Board of India (SEBI) will first examine all the papers and then may send questions after the filing of the IPO documents. So, this may cause a delay in Ola Electric’s IPO. According to one of the sources, it has also been reported that Ola Electric plans to do its roadshows for its IPO in early January or February.
As for Ola Electric’s last funding round, it was led by Singapore’s investment firm Temasek. The funding round raised an additional $140 million for Ola Electric at a valuation of $5.4 billion. Additionally, the company also raised funding from Japan’s Softbank as well.
With a 32% market share, Ola Electric, founded by Bhavish Aggarwal, currently competes with another Bangalore-based electric startup, Ather Energy, legacy automaker TVS Motor, and Hero Electric. According to industry estimates, Ola sold over 95,000 e-scooters between April and August 2023, generating a $5 billion valuation last year. According to reports, it had an operating loss of $136 million on revenue of $335 million during the fiscal year that ended in March 2023.
Other Ola Electric news
In other Ola Electric news, recently, Bhavish Aggarwal shared a picture of himself sitting on the first-ever S1X scooter in front of the Ola Future Factory. The picture of him and the first-ever Ola S1X production model was shared by Bhavish Aggarwal on his X (formerly Twitter) account. The Ola founder and CEO shared the two pictures with the caption, “The first S1X off the line!! I think I like this design the most amongst all our S1 products.” The picture of the founder was with his team members and the new S1X, finished in white, standing in front. In another picture, Bhavish was seen sitting on the S1X electric scooter.
Ola Electric has launched the all-new S1X model in three variants. The introductory price of the Ola Electric S1X was Rs 79,999, but now the model has been priced at Rs 89,999. The 3 kWh battery S1X model was priced at Rs 89,999, but now it costs Rs 99,999. Lastly, the S1X+ model, which cost Rs 99,999 during the introductory pricing, now costs Rs 1,09,999.