- By Vaamanaa Sethi
- Thu, 07 Sep 2023 04:23 PM (IST)
- Source:JND
Ola Electric has raised over $140 million in a new funding round from Singapore-based investment firm Temasek at a valuation of $5.4 billion, two sources were quoted as saying by Reuters. This move came ahead of the company’s plans to go public.
According to a Reuters report, the investment round has been closed and Ola Electric will receive funds within a week’s time. However, there will be another round of fundraising before it files draft papers or an up to $1 billion IPO planned for late 2023, source said. The deal was signed on Monday, as per reports.
The electric two-wheeler maker is looking for a valuation tag of $10 billion in the IPO and raise net proceeds of $1 billion in the process, as per a report by YourStory. The company is likely to file its draft red herring prospectus (DRHP) by the end of the next quarter and launch the IPO by the end of the last quarter of the current fiscal year
Bhavish Aggarwal’s Ola Electric, which is backed by SoftBank Group, accounts for over 32% of the electric scooter market, directly competing with Ather Energy, TVS Motors, and Hero Electric.
According to industry data, Ola, which was valued at $5 billion last year, managed to sell approximately 95,000 e-scooters between April and August 2023. As reported by Reuters, the company posted an operating loss of $136 million in the fiscal year ending March 2023, despite generating $335 million in revenue.
Also read: Nazara Technologies Gets Board Approval To Raise Rs 410 Cr From SBI Mutual Fund
The Indian government has announced its ambition for electric two-wheelers, including motorcycles, to comprise 70% of total sales by 2030. This represents a substantial increase from the current 14% market share.
