Ola Electric Raises Rs 3,200 Cr Funding To Set Up Lithium-ion Cell Factory In Tamil Nadu; Details Here

Electric Vehicle major Ola Electric, on Thursday, announced that it has raised Rs 3,200 crore in a latest funding round with a mix of debt and equity. Temasek-led investors led the funding round in debt, meanwhile, State Bank of India (SBI) closed the round in equity.

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The funds raised will be used to expand Ola's EV business and to set up India's first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu, the company said in a statement.

“We are committed to developing core technologies in EVs and cell and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility,” said founder and chief executive officer Bhavish Aggarwal.

As a part of Ola's strategy to secure approximately $300-$400 million in preparation for its upcoming initial public offering, the fundraising occurred in several stages. In September, the electric vehicle manufacturer successfully concluded a funding round, raising $140 million from Temasek.

Earlier in January this year, the EV company raised over $200 million from Tekne Private Ventures, Edelweiss and others.

According to a Moneycontrol report, Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs to manage its initial public offering (IPO) in early 2024. It is also speculated that the planned IPO will be a combination of both primary and secondary share offerings.

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Ola Electric reported its net loss widened to Rs 784.15 crore in FY22, from Rs 199.23 crore in FY21. Operating revenue hit Rs 373.42 crore in FY22, much higher than the Rs 86 lakh in the year-ago period.