Singapore’s investment company, Temasek, has led a funding round of $140 million in Ola Electric, valuing the Indian e-scooter manufacturer at $5.4 billion.
This funding round has already been completed, with Ola Electric set to receive the funds within a week. However, another round of fundraising is expected before the company files for an IPO, which is planned for late 2023, according to insider sources.
Ola Electric, founded by Bhavish Aggarwal and supported by SoftBank Group of Japan, has established itself as India’s leading e-scooter manufacturer, capturing a 32% market share. It competes with companies such as Ather Energy, TVS Motor, as well as Hero Electric.
Last year, Ola Electric was valued at $5 billion, and from April to August 2023, it sold approximately 95,000 e-scooters, as per industry data. Despite its strong sales, the company reported an operating loss of $136 million on revenue of $335 million for the fiscal year ending in March 2023.
The Indian government has set an ambitious goal for electric two-wheelers, aiming for them to represent 70% of total two-wheeler sales, including motorcycles, by 2030, a significant increase from the current 14%.