Ola Electric, an emerging powerhouse in the electric scooter manufacturing landscape, has experienced a triumphant fundraising round, securing a massive $300 million. This fresh financial injection places the firm’s valuation at an impressive $6 billion, according to insider sources cited by the Business Standard on May 23.
The primary purpose of this colossal capital influx is to amplify the company’s production capabilities for electric two-wheelers. As of now, Ola Electric boasts an annual production capacity of half a million units. However, with the aid of the newly raised funds, the manufacturer aims to quadruple this figure, targeting a yearly production output of 2 million units.
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Notably, a significant portion of the funds will be earmarked for setting up an innovative cell chemistry battery plant. The initiative falls perfectly under the ambit of the production-linked incentive scheme, thus making Ola Electric eligible for additional incentives. This cutting-edge plant will provide a crucial boost to the firm’s electric vehicle production, enhancing both efficiency and sustainability.
Interestingly, the latest fundraising round was steered by a renowned sovereign fund company. However, SoftBank Group, one of Ola Electric’s early major backers, abstained from participating in this round.
This funding round comes at a critical juncture for Ola Electric. The company is on the brink of achieving financial stability and is predicted to break even in the near future. Additionally, it anticipates turning profitable soon. These expectations are fuelled by the manufacturer’s impressive track record, with an average monthly run rate surpassing 20,000 units.
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Ola Electric’s ambitious expansion blueprint includes the unveiling of 500 Experience Centres scattered across all significant cities by April 2023. These centres will function as hubs for showcasing Ola Electric’s innovative two-wheelers and will help potential customers understand the benefits of transitioning to electric mobility. With such comprehensive strategies, Ola Electric is truly setting the stage for a green revolution on the roads.
