Ola Electric is an electric vehicle manufacturing startup that announced plans to launch its 740 million USD Initial Public Offering from the Security Exchange Board of India next month. The report by Moneycontrol mentioned that the SoftBank-backed firm plans to raise this amount through the combination of fresh issues and offers for sale. We are talking about EV startup Ola Electric may launch its IPO worth $740 million in August.
This EV startup is expected to have a valuation of around 4.5 billion USD for its upcoming IPO round. This marks up to a 20 percent decrease from its last funding round. The company raised $50 million in its debt funding round led by EvolutionX debt Capital. The company secured the funding by allotting 41,000 NCDs with an issue price of Rs 1 lakh each. Ola Electric uses advanced technologies to offer quality electric vehicle components in India. The startup has an omnichannel distribution network that includes 935 experience centers and over 414 service centers.
Ola Electric has raised over 1 billion USD from its equity and debt rounds at a valuation of 5.5 billion USD since its inception to date. The company announced a seven-times increase in its operational revenue to Rs 2,631 crore for FY23, and the losses increased by 87.76 percent to Rs 1,472 crore for the same period. The startup also filed a draft red herring prospectus with SEBI to raise Rs 5,500 crore through initial public listing in December last year.
Ola Electric offers two-wheeler electric vehicle components and around five scooter models with a warranty to its users. The startup also passed a resolution to issue 10,000 non-convertible debentures to Alteria Capital at an issue price of Rs 1,00,000 each. The board issued 6,000 NCDs to Alteria Capital India Fund II, and the remaining NCDs were allocated to Alteria Capital India Fund III.
The company reported that its net losses saw an 88% increase to Rs 1,471.6 crore in FY23. However, the revenue from operations surged by 605% YoY to Rs 2,630.9 in the same financial year. The development came just after the EV sector saw increased interest from investors. This segment is expected to grow in size in upcoming years. The Bengaluru startup, Ather Energy, recently raised $34.5 million in a debt and equity round. Ola Electric faces competition from other two-wheeler electric vehicle manufacturing companies such as Vida, Bajaj Chetak TVS, Ather Energy, and more.
Conclusion
Electric Vehicle manufacturing startup Ola Electric plans to launch its $740 million IPO next month. Last month, the EV startup also received approval for its 660 million USD Initial Public Offering from the Security Exchange Board of India. The company expects a 20 percent decrease from its last funding round and has a valuation of $4.5 billion for this upcoming IPO round. Ola Electric manufactures electric components and two-wheeler vehicles with a warranty on its cars. The startup operates omnichannel distribution networks with over 414 services and 935 experience centers across India. The company has secured over 1 billion USD since its inception.
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