Electric vehicle

Temasek Leads $140 Million Investment Round in Ola Electric at $5.4 Billion Valuation Ahead of IPO

• ByStartupStory     |    September 7, 2023

Temasek, has taken the lead in a significant $140 million funding round for Ola Electric, a major player in India’s electric scooter market. This latest funding round, which values Ola Electric at $5.4 billion, is a crucial step for the company as it prepares for an upcoming initial public offering (IPO).

Sources with direct knowledge of the matter confirmed that the investment round has been successfully closed, and Ola Electric is expected to receive the funds within the next week. Another round of fundraising is anticipated before the company files papers for its IPO, which is slated for late 2023.

While Ola Electric has not officially responded to Reuters’ request for comment, Temasek, an existing investor in Ola Electric, declined to provide a statement.

Ola Electric, founded by Bhavish Aggarwal and backed by Japan’s SoftBank Group, has firmly established itself as the leader in India’s electric scooter market, boasting a substantial 32% market share. It competes with other notable players such as Ather Energy, TVS Motor, and Hero Electric.

The company, previously valued at $5 billion in the preceding year, achieved impressive sales figures, with approximately 95,000 e-scooters sold during the period spanning April to August 2023, as indicated by industry data. However, it also reported an operating loss of $136 million against a revenue of $335 million for the fiscal year ending March 2023, as reported by Reuters.

The Indian government has set ambitious targets for the electric two-wheeler industry, with a goal for electric variants to account for 70% of total two-wheeler sales (including motorcycles) by 2030, a significant increase from the current 14%.

 

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