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    Ola Electric raises $200 million in fresh funding at $5 billion valuation

    Synopsis

    Ola Electric is said to use the funding to ramp up its plans for bringing out newer electric scooters, expand its charging infrastructure and build cell manufacturing capabilities.

    Ola ElectricETtech
    Ola Electric has raised over $200 million from Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss and others in a funding round that pegged the mobility startup's valuation at $5 billion.

    The company, which has been on a fundraising spree, was last valued at $3 billion in September 2021, when it raised a similar amount from Falcon Edge, Japan’s SoftBank and others.

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    According to a source, the latest funding will help Ola Electric ramp up its plans for bringing out newer models, expand charging infrastructure and build cell manufacturing capabilities.

    “I thank investors for their support and look forward to partnering with them to take the EV (electric vehicle) revolution from India to the world,” said Bhavish Aggarwal, cofounder and CEO of Ola Electric, an entity separate from Ola Cabs operator ANI Technologies. Ola Electric is “looking forward to bringing innovative products to more two-wheeler categories, including bikes, as well as cars", he said.

    Following its previous fundraise, Ola Electric said that it would accelerate development of other vehicle platforms, including electric motorcycles, mass-market scooters and electric cars.

    Ola-1

    Ola Electric began delivering its first electric vehicle, Ola S1 Pro, last month after missing its own deadlines multiple times. ET reported in December that the company had delivered electric scooters without some of the promised features. Ola Electric produces its electric two-wheelers out of its FutureFactory in Krishnagiri, Tamil Nadu. According to the company, the factory has capacity to produce up to 10 million scooters a year.

    The EV startup has also started setting up charging stations called Hyperchargers. ET was the first to report that it was in talks with partners like Bharat Petroleum and apartment management company Apna Complex, for setting up the charging infrastructure. Last year, the Benglauru-based company said that the Ola Hypercharger Network would have more than 100,000 charging points across 400 cities in the coming years. Of this, over 4,000 charging points will be set up through 2022, the company had promised.

    Ola Electric is among the companies that have applied for the government’s Rs 18,100-crore production-linked incentive (PLI) scheme for cell manufacturing, ET reported earlier.

    India currently does not have the capability to manufacture lithium-ion battery cells. All manufacturers import cells from countries such as South Korea and China and assemble them to make battery packs that power electric vehicles.

    In November, Ola Electric also announced key appointments to its business. While V Ramesh joined as vice president and is expected to lead operations for the EV company’s manufacturing hub, Priteesh Mahajan was appointed head of two-wheeler product planning and programme management for its electric fleet.

    Cofounder Ankit Jain had quit Ola Electric in 2020.

    Stiff competition
    Ola Electric’s latest funding comes at a time when it faces stiff competition from crosstown rival Ather Energy, as well as incumbents Bajaj Auto and TVS Motor Co. Ather Energy recently raised Rs 420 crore from Hero MotoCorp, whose own electric scooter is likely to launch in March. TVS Motor already has a model, i-Cube, on the roads, while Bajaj had launched Chetak last year.

    ET reported last week that Tata Motors was looking to ramp up its offerings in the EV space with plans to launch three affordable electric car models in the next 12-18 months. Other competitors in the space include Ultraviolette Automotive, which is focused on the premium electric motorbike market. TVS Motors is a key investor in the startup.


    Global giants including Tesla and Foxconn have also announced their entry into the Indian market and are actively looking to grab a pie of the country’s fast-growing EV market. Recently, Telangana and Karnataka invited Tesla to set up its local manufacturing plant.
    ( Originally published on Jan 24, 2022 )
    The Economic Times

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