Indian two-wheeler automaker Ola Electric successfully raised Rs 3,200 crore (approximately $385 million) in funding to support its expansion plans, Techloy reports.
The funding round apparently includes both equity and debt from major investors led by Temasek and the State Bank of India.
Ola Electric to develop a li-ion battery cell factory
Ola Electric aims to utilize the recent funding to build its inaugural li-ion battery cell production plant in Krishnagiri, Tamil Nadu.
The gigafactory, which will undergo multi-phase development, aims to initially produce five gigawatt-hours of battery cell capacity. It will gradually reach a whopping 100 GWh capacity once fully operational.
Other plans
Apart from the planned Tamil Nadu li-ion battery cell factory, Ola Electric’s electric vehicle roadmap also includes expanding its two-wheeler EV production output.
It aims to launch new electric motorcycle models in the Indian market by the end of 2024, Entrackr indicated. Moreover, it now explores the possibility of having electric car offerings.
Therefore, the planned battery cell factory is crucial for the company to support the upcoming production of these new two-wheelers and electric cars.
Ola Electric’s progress
Ola Electric has garnered major investments from established investors, including Temasek, Blue Investments, DIG Investments, Tiger Global, Tekne Private Ventures, and Ashutosh Vinayak Joshi. Altogether, they have already collectively provided $300 million in funding for the Indian two-wheeler EV maker.
In total, Ola Electric has so far raised over $1 billion in funding, including equity and debt. Data intelligence platform TheKredible’s estimates also suggest that the electric automaker now has a market valuation post-allotment of about Rs 44,410 crore ($5.4 billion), up from just $5 billion in January 2022.
Ola Electric also previously announced plans to launch an Initial Public Offering (IPO) by early next year, which is expected to reach Rs 6,000-8,000 crore.
