Ola Electric seeks to raise $662 million in India IPO
Reading Time: 2 minutesIndia’s Ola Electric seeks to raise $661.8 million by selling new shares in an initial public offering, the six-year-old Bengaluru-headquartered startup said in draft papers filed with the country’s market regulator on Friday.
The startup also plans to sell roughly 95.2 million shares from existing investors and shareholders, including some of those from founder Bhavish Aggarwal (pictured above), Alpha Wave Ventures, Tiger Global, Matrix Partners and SoftBank, according to the draft prospectus. Kotak, Citi, Bank of America, Goldman Sachs, Axis, ICICI, SBI and BOB Capital are running the book for the IPO, according to the prospectus.
Ola Electric plans to use roughly $150 million of the total proceeds for expanding the manufacturing capacity of its electric vehicle cell factory to 6.4 gigawatt hours from 5 gigawatt hours, the prospectus said. It plans major EV expansion into cars, batteries and cells with a large manufacturing hub in India. Aggarwal aims to produce the company’s own two-wheelers, cars and lithium cells.
Led by Aggarwal1, Ola Electric emerged out of the ride-hailing giant Ola in 2019. The two firms continue to share a number of resources2 and some Ola investors had requested Aggarwal to create a holding entity for both the firms and grant them allocation in the parent firm.
Its losses in the fiscal year 2023 stood at $176 million, according to the document. The startup listed multiple risk factors in its report, including if the government stops giving incentives to local electric vehicle makers, as well as the possibility of undergoing many key managerial changes. ‘Our employee attrition rate was 42.06% and 47.48% in the seven-month period ended October 31, 2023 (on an annualized basis) and Fiscal 2023, respectively,’ Ola Electric said.
But all said and done, it’s remarkable that Ola Electric, which this year launched several new lower-priced variants of its flagship S1 electric scooter model and also an upgraded version, already leads the EV scooter market in India, commanding about 35% of the market share. Its IPO is the first by a two-wheeler maker in the country in over 15 years.
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1. Ola Electric says in the DRHP:
2. Ola Electric says:
Reference: https://techcrunch.com/2023/12/22/india-ola-electric-files-for-662-million-ipo/
Ref: techcrunch
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