Ola Electric in talks to secure up to $1 billion from investors
- ByAyushi Ray | August 27, 2021
Ola Electric in talks to secure up to $1 billion from investors. The company has hired investment bank JP Morgan, which has reached out to several large private equity funds for the investment, the people said on condition of anonymity as the talks are private. In July, Ola Electric raised $100 million from state-run Bank of Baroda to finance the first phase of construction of what the company claimed would be the world’s largest electric two-wheeler factory. While the company has a comfortable liquidity position currently, it will need to ensure a comfortable debt-to-equity ratio to fund expansion and gain market share in the tightly contested space for electric two-wheeler space, which is expected to see a plethora of new launches, The company also wants to keep dry powder ready to pursue acquisitions in the space.
On August 15, Ola Electric unveiled its S1 and S1 Pro electric scooter models, taking on rival startups and established automakers such as Ather Energy, Bajaj Auto and TVS Motors. The company launched the scooters at ₹99,999 for the base variant, while the top variant is priced at ₹1.3 lakh. The first phase of its scooter plant will be operational soon, rolling out 2 million electric scooters annually in the initial phase. The mega factory will serve as Ola’s global manufacturing hub for a range of electric two-wheelers to be sold in India and international markets such as Europe, the UK, Latin America, Australia, and New Zealand. Ola Electric Mobility was set up as a fully owned unit of ride-hailing startup Ola in 2017
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