Singapore-based investment firm Temasek takes the helm in a funding round for India’s Ola Electric, pumping in $140M and boosting the e-scooter maker’s market value to a staggering $5.4B.
- Closing The Deal: Insiders reveal Ola Electric anticipates receiving funds within the next week.
- Round 2: Ola Electric is reportedly setting the stage for another round of fundraising before filing documentation for its proposed IPO, scheduled for late 2023. The IPO could potentially add another $1B to the company’s valuation.
- Hush Hush: While Ola Electric remains tight-lipped on these financial developments, Temasek also refrained from commenting. It’s worth mentioning that Temasek is not a new player in Ola’s financial game, previously making investments in the company.
- Background: Ola Electric, the brainchild of Bhavish Aggarwal and backed by Japan’s SoftBank Group, is a frontrunner in India’s e-scooter market, with a commanding 32% share. Competition runs high in the e-scooter market, with Ola Electric pitted against contenders like Ather Energy, TVS Motor, and Hero Electric.
- Previously: Last year, Ola Electric had a valuation of $5B and boasted sales of approximately 95,000 e-scooters from April to August 2023, according to industry data.
Despite recording an operating loss of $136M on a reported revenue of $335M for the fiscal year ending March 2023, Ola Electric shows no signs of slowing down.
The Indian government’s ambitious goals for the electric vehicle market might be a contributing factor, aiming for electric vehicles to make up 70% of two-wheeler sales by 2030 – a significant leap from the current 14%.
