Singapore’s investment firm, Temasek, has taken a prominent role in a substantial $140 million funding round for Ola Electric, a major player in India’s burgeoning electric scooter market. This latest infusion of capital has pegged Ola Electric’s valuation at an impressive $5.4 billion, marking a pivotal moment for the company as it gears up for an imminent initial public offering (IPO).
Sources with direct insights into the matter have confirmed the successful closure of the investment round, with Ola Electric poised to receive the funds in the coming week. Market analysts also anticipate another game of fundraising activities before the company formally files for its IPO, which is scheduled for the latter part of 2023.
While Ola Electric has not officially commented on this development, Temasek, an existing investor in the company, has chosen not to release a formal statement at this time.
Founded by Bhavish Aggarwal and backed by Japan’s SoftBank Group, Ola Electric has solidified its position as the frontrunner in India’s electric scooter market, boasting a substantial 32% market share. The company competes vigorously with other industry stalwarts, including Ather Energy, TVS Motor, and Hero Electric.
In the previous year, the company was valued at $5 billion. According to industry data, from April to August 2023, Ola Electric reported commendable sales figures, with approximately 95,000 e-scooters sold. However, it’s worth noting that for the fiscal year ending March 2023, the company reported an operating loss of $136 million against a revenue of $335 million, as reported by Reuters.
The Indian government has set ambitious targets for the electric two-wheeler industry, aiming for electric variants to constitute a substantial 70% of total two-wheeler sales, including motorcycles, by 2030. This represents a significant upsurge from the current 14%, underlining the immense growth potential in the Indian electric vehicle market.
