Ola Electric Valuation: Reportedly Raising Funds at $2.75B+

Ola Electric Pursues New Funding Round

Ola Electric is reportedly engaged in advanced discussions to secure between $250 million and $500 million in a fresh funding round. This move is intended to facilitate the expansion of its electric vehicle manufacturing operations within the South Asian market.

Investment Details and Valuation

Sources indicate that Falcon Edge Capital is poised to lead this investment round. The potential valuation for Ola Electric ranges from $2.75 billion to $3.5 billion. This represents a significant increase compared to the $1 billion valuation achieved during its previous fundraising effort in 2019.

Singapore’s Temasek is also reportedly in talks to participate in this funding round, according to individuals with knowledge of the negotiations.

Ola's IPO Plans

These discussions are occurring concurrently with plans by Ola, the parent company of Ola Electric, to initiate an initial public offering (IPO). The company recently secured $500 million in funding.

Preparations for the IPO are underway, with several investment banks already engaged. A filing is anticipated later this year, as confirmed by a source familiar with the matter.

Potential Funding Amount and IPO Timeline

While the current discussions center around $250-$500 million, the company is potentially seeking to raise up to $1 billion. However, it's important to note that these details are subject to change as negotiations progress.

Initial reports regarding the IPO plans were first published by Indian media outlets.

Ola S1 Electric Scooter Launch

Earlier this month, Ola Electric introduced its inaugural electric scooter, the Ola S1. It is priced at 99,999 Indian rupees, which is equivalent to approximately $1,350.

The Ola S1 boasts a range of 121 kilometers (75 miles) on a full charge.

Analyst Perspective

Analysts at Bernstein have highlighted Ola’s current market position. They state that Ola offers the most compelling product currently available, featuring significantly enhanced capabilities compared to its competitors.

The report notes that established manufacturers like Bajaj and TVS have presented products that appear as mere adaptations of internal combustion engine (ICE) vehicles, lacking the innovative features of Ola’s offering.

While companies like Ather have demonstrated commitment to product development, their higher pricing, slower manufacturing scale-up, and limited initial city availability have hindered sales.

Key differentiators for Ola include its software-driven features, extended range, high peak speeds, rapid acceleration, ample boot space, and diverse color options.

This article has been updated to include further information.