Ola Electric Mobility raised Rs 410 crore from EvolutionX Debt Capital, which was backed by DBS and Temasek. Founder Bhavish Aggarwal is presenting the IPO to worldwide investors, aiming for a price of $7-8 billion.

Ola Electric

Ola Electric Mobility Ltd, which is planning an IPO for electric two-wheelers, has raised Rs 410 crore (about $50 million) from EvolutionX Debt Capital through non-convertible debentures, according to regulatory filings with the Registrar of Companies.

EvolutionX Debt Capital, a debt financing vehicle founded by DBS and Temasek, has previously financed Indian internet companies including Udaan, Mensa Brands, PharmEasy, and Lendingkart.

The company closed a $240 million loan financing from State Bank of India in October 2023 as part of a $384 million financing round that also included equity capital from Temasek, Singapore’s sovereign wealth fund, prior to the most recent debt funding.

Ola Electric Mobility has a $5.4 billion market valuation at the moment. According to Tracxn, the company has raised around $1 billion in equity and loan capital to date.

Ola Electric Mobility filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on December 22 of last year, proposing to raise up to Rs 5,500 crore through a fresh issuance, in addition to an offer-for-sale component of 95.2 million shares. The Bengaluru-based startup plans to raise $7-8 billion through the public offering, according to ET, citing bankers.

The company has yet to receive Sebi’s approval for the IPO.

According to persons familiar with the situation, company founder Bhavish Aggarwal has been on a roadshow pitching the IPO to worldwide investors.

According to the most recent reports with the Reserve Bank of India (RoC), Ola Electric Mobility, the parent company of Ola’s electric vehicle (EV) business, intends to invest Rs 500 crore in its wholly owned subsidiary, Ola Electric Technologies Pvt Ltd (OET).

The company’s DRHP states that OET is “engaged in the business of manufacturing and supplying electric vehicles, as well as providing services across the electric vehicle value-chain.” It is a significant subsidiary, accounting for about 95% of the parent company’s net loss.

Ola Electric Mobility’s intentions to enter the commercial EV market are closely followed by the Rs 500-crore investment in OET, which may be made in one or more tranches in the form of loan or equity.

The company intends to introduce an electric auto rickshaw that will be supplied directly to customers, according to an Economic Times article from March 13. The new vehicle is likely to compete with the Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the electric three-wheeler market.

As part of its larger ambitions to join the commercial vehicle market, Ola Electric Mobility has been developing the product for a few years.

According to Vahan site data, Ola Electric has approximately 41% market share in the electric scooter segment, with TVS Motor, Bajaj Auto, and Ather Energy holding approximately 18%, 14%, and 11% shares, respectively.

According to Economic Times, The company has also been working on constructing a ‘gigafactory’ to manufacture battery cells, with plans to allocate Rs 1,226 crore from the expected IPO proceeds to the gigafactory.