Ola Electric to raise $300 mn for expansion
According to sources close to the company, e-vehicle manufacturer Ola Electric is close to raising funds of around USD 300 million for expansion plans and other corporate needs.
The new round of funding comes amid expectations that Ola Electric will soon break even and become profitable.
According to the sources, the fundraising would be managed by investment bank Goldman Sachs, and the funds would be raised from existing and marquee global investors and sovereign funds.
Ola Electric led the pack of Indian EV manufacturers by volume and revenue within a year of launching its electric scooters, the Ola S1 and Ola S1 Pro, with a revenue run rate close to a billion dollars.
The company has been expanding its product portfolio across two-wheelers and four-wheelers, as part of its plan to develop core technologies such as cell manufacturing.
Ola Electric recently signed an agreement with the Tamil Nadu government to acquire land in Krishnagiri to build the world’s largest EV hub, which will include the company’s cell factory, four-wheeler factory, and supplier ecosystem. According to sources, the company also plans to expand its existing two-wheeler factory. The electric two-wheeler manufacturer has sold over 20,000 units per month on average. Its expansion strategy calls for the establishment of 500 Experience Centres in all major cities by April 2023.