ImpactAlpha, October 31 — Bangalore-based Ola Electric, launched by the ride-hailing company Ola, has raised nearly $1.6 billion since 2019 to manufacture electric vehicles and EV infrastructure, starting with e-scooters. Electric two- and three-wheelers make up a large majority of EV sales in India.
Ola Electric has raised 32 billion rupees ($384 million) in equity and debt to expand its operations and finish a lithium-ion battery gigafactory in the southern Indian state of Tamil Nadu. “At Ola, our vision is to end the ICE age in automobiles,” said Ola Electric’s Bhavish Aggarwal. “Our upcoming gigafactory will be a big leap in India’s journey towards becoming a global EV hub.”
The investment round, led by Temasek, values Ola Electric at about $5.4 billion.
Ola Electric is India’s e-scooter market leader with a 32% market share. The company has had some challenges around the performance of its scooters. Last week in Pune, an Ola Electric scooter caught fire, prompting a response from the company. On social media, a wave of customers have shared complaints about slow repair service.
Ola Electric has a $1.5 billion revenue target. In 2022-23, it reported an operating loss of $136 million on revenues of $335 million.