Ola Electric Gets SEBI Nod for $660 Million IPO
- ByStartupStory | June 21, 2024
Ola Electric, the electric vehicle arm of Ola, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) to raise Rs 5,500 crore ($660 million). This approval comes six months after the company filed its draft red herring prospectus (DRHP) in December 2023.
Bhavish Aggarwal, the founder of Ola Electric, holds the largest stake in the company at 36.94%, followed by SoftBank at 21.98%. Other notable stakeholders include Tiger Global with 6.03%, Indus Trust at 3.85%, and Alpha Wave owning 3.49%.
Since the DRHP filing, Ola Electric has secured $62 million in debt through two tranches. In April, EvolutionX provided $50 million, and the latest tranche was secured earlier this month. Entrackr reported these developments exclusively. To date, Ola Electric has raised over $1 billion in equity and debt rounds, with its most recent valuation standing at $5.5 billion.
The company saw exponential growth in FY23, with its revenue from operations increasing seven-fold to Rs 2,631 crore. Despite this significant growth, the company’s losses also surged by 87.76%, reaching Rs 1,472 crore for the fiscal year ending March 2023. Ola Electric has yet to file its annual report for FY24.
Ola Electric’s direct competitor, Ather Energy, is also preparing for an IPO. Recently, Ather Energy facilitated an exit for its early investor, Sachin Bansal, who sold his 7.5% stake to Hero MotoCorp and Zerodha co-founder Nikhil Kamath.
The current year, 2024, shows promising prospects for startups entering the public market. While 2021 saw over 10 startups listing on stock exchanges, this number dropped to two in 2022 and five in 2023. However, 2024 has witnessed a resurgence with several internet companies such as TBO Tech, Digit Insurance, Awfis, and Ixigo getting listed. Other companies like FirstCry, Mobikwik, Unicommerce, and Swiggy are awaiting approval from the market regulator.
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