Ola Electric, a six-year-old startup based in Bengaluru, India, aims to generate $661.8 million through an initial public offering (IPO), according to draft papers filed with the country’s market regulator on Friday. This move comes after the startup secured $384 million in a debt-heavy funding round in October, with a valuation of $5.4 billion. The IPO targets a valuation of $6.5 billion to $8 billion. Ola Electric plans to sell approximately 95.2 million shares from existing investors, including founder Bhavish Aggarwal, Alpha Wave Ventures, Tiger Global, Matrix Partners, and SoftBank.
The IPO will be facilitated by Kotak, Citi, Bank of America, Goldman Sachs, Axis, ICICI, SBI, and BOB Capital. Ola Electric intends to allocate around $150 million from the proceeds to expand its electric vehicle cell factory’s manufacturing capacity to 6.4 gigawatt hours. The startup plans significant expansion in electric vehicles (EVs), including cars, batteries, and cells, with a large manufacturing hub in India. The founder, Bhavish Aggarwal, envisions producing the company’s own two-wheelers, cars, and lithium cells.
Ola Electric, a spinoff from the ride-hailing giant Ola in 2019, reported losses of $176 million in fiscal year 2023. The IPO prospectus highlights risks, including potential government policy changes and key managerial changes. The document also notes a high employee attrition rate and dependencies on Bhavish Aggarwal’s time, who is the Founder, Chairman, and Managing Director. Despite challenges, Ola Electric commands a 35% market share in the Indian EV scooter market and is set to become the country’s first two-wheeler maker to go public in over 15 years.
