Before its IPO, Ola Electric receives $140 million in funding from Temasek

According to two sources cited by Reuters, Ola Electric has secured more than $140 million in a fresh fundraising round from Singapore-based investment company Temasek at a value of $5.4 billion. This action was taken before the company’s intended IPO.

The financing round has been completed, and Ola Electric will get the money within a week, according to a Reuters story. Before filing draft papers or the up to $1 billion IPO scheduled for late 2023, there will be one more round of funding, a source said. According to sources, the contract was signed on Monday.

According to a report by YourStory, the manufacturer of electric two-wheelers wants to earn $1 billion in net proceeds from the IPO at a value of $10 billion. By the end of the next quarter, the firm is probably going to submit its draft red herring prospectus (DRHP), and by the end of the current fiscal year’s final quarter, it will probably start the IPO.

With approximately 32% of the market for electric scooters, Bhavish Aggarwal’s Ola Electric, supported by SoftBank Group, is in direct competition with Ather Energy, TVS Motors, and Hero Electric.

Industry statistics show that Ola, which was valued at $5 billion last year, sold over 95,000 electric scooters between April and August 2023. According to Reuters, despite making $335 million in sales for the fiscal year that ended in March 2023, the firm recorded an operational loss of $136 million.

By 2030, the Indian government wants electric two-wheelers, including motorcycles, to account for 70% of all sales. In comparison to the existing 14% market share, this implies a significant gain.