Electric vehicle

Ola Electric Secures SEBI Nod for IPO, Eyes Rs 5,500 Crore Fundraise

• ByStartupStory     |    June 12, 2024

Ola Electric, the leading electric vehicle (EV) manufacturer in India, has received approval from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO). The company, led by Bhavish Aggarwal, aims to raise Rs 5,500 crore through a combination of a fresh issue of shares and an offer for sale, according to sources familiar with the matter.

Ola Electric filed its Draft Red Herring Prospectus (DRHP) with SEBI in December 2023, marking a significant milestone in its journey towards becoming the first Indian two-wheeler EV company to go public. The IPO is expected to pave the way for a broader array of Indian startups to list on the domestic stock markets.

In a strategic move to bolster its financial position ahead of the IPO, Ola Electric recently secured Rs 100 crore in debt funding from Alteria Capital. This marks the company’s second round of debt financing in 2024, reflecting its proactive approach to ensuring robust financial health.

Ola Electric joins the ranks of other Indian startups such as Go Digit Insurance, Awfis, and Ixigo, which have successfully tapped the public markets this year. Furthermore, the company’s listing could inspire others, including FirstCry, Unicommerce, and MobiKwik, which have also announced their intentions to go public.

The funds raised through the IPO will be directed towards several key initiatives. As outlined in the DRHP, Ola Electric plans to expand its cell manufacturing plant, intensify its research and development efforts, repay existing debt, and pursue organic growth initiatives via its Ola Electric Technologies unit. The company conducts R&D activities across India, the United Kingdom, and the United States, with a focus on developing new EV products and core components such as battery packs, motors, and vehicle frames.

Ola Electric’s financial performance has shown remarkable growth, with consolidated revenue reaching Rs 2,782 crore for FY23, a staggering 510% increase year-on-year, despite reporting a loss of Rs 1,472 crore. For the first quarter of FY24, the company reported total revenue of Rs 1,272 crore and a loss of Rs 267 crore.

With approximately 52% market share, Ola Electric has firmly established itself as the leading EV manufacturer in India. Its closest competitor, Bengaluru-based Ather Energy, also has plans to go public next year.

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