Ola Electric, the electric vehicle startup based in Bengaluru, India, has announced that it has raised $384.43 million in a recent funding round. This round of funding included approximately $240 million in debt. The funding has increased the valuation of Ola Electric to around $5.4 billion. The funding round was led by Singapore’s sovereign wealth fund, Temasek, and the debt was provided by the State Bank of India.
Key Takeaway
Ola Electric has raised $384 million, including $240 million in debt, in a recent funding round. This funding will support the expansion of its EV business and the establishment of India’s first lithium-ion cell manufacturing facility. Ola Electric currently leads the EV scooter market in India, with over 30% market share. Despite a reduction in subsidies, Ola Electric’s EVs remain more cost-effective compared to ICE scooters and even entry-level motorcycles on a total cost of ownership basis.
Driving the Electric Vehicle Market
Ola Electric currently leads the EV scooter market in India, holding over 30% of the market share, according to industry data. The company has recently launched new lower-priced variants of its popular S1 electric scooter model, as well as an upgraded version. Despite a reduction in subsidies, Ola Electric’s EVs remain more cost-effective, being 13-23% cheaper than traditional ICE scooters over a five-year ownership cycle. In fact, the Ola S1 Air and X models are even more affordable than entry-level motorcycles on a total cost of ownership basis, as noted by analysts at JP Morgan in a recent report.
Expansion Plans for Ola Electric
With the new funding, Ola Electric plans to expand its EV business even further. The company aims to establish “India’s first lithium-ion cell manufacturing facility” in Krishnagiri, Tamil Nadu. This facility will contribute to India’s vision of becoming a global hub for electric vehicles. Bhavish Aggarwal, the founder and chief executive of Ola Electric, expressed his commitment to developing core technologies in EVs and lithium-ion cells. The goal is to accelerate the transition to sustainable mobility in India.
