Ola Electric has signed an agreement to raise USD 140 million from existing investors, including Temasek Holdings, according to media reports.
An agreement was signed on Monday, and the funds will be deposited in the company’s account within the next four to five days, reports further added.
Temasek, a Singapore state investor, is investing approximately USD 90 million in the company. Other investors, mostly family offices, will contribute the rest of the funds. The company’s current valuation is around USD 5.4-5.5 billion, which is higher than its previous valuation of $5 billion. In January 2022, Ola Electric raised USD 200 million from Tekne Private Ventures, Alpine Opportunity Fund, and Edelweiss.
Ahead of its IPO, the fresh funds will help the startup maintain a substantial runway. It has appointed many investment banks and is preparing for an IPO in early 2024. Ola Electric’s losses increased from Rs 199 crore in FY21 to Rs 784 crore in FY22, while its revenue grew from Rs 86 lakh to Rs 373 crore during the same period.
The company is yet to file its FY23 financial statement, but a Reuters report said that Ola Electric has registered an operating loss of USD 136 million on revenue of USD 335 million.
Ola Electric is a leading brand in the electric two-wheeler market of India. Their S1 and S1 Pro scooters are very popular. They currently have a 30 percent share of the e-scooter market in the country. Ola Electric has also presented designs for an electric car and an e-motorcycle.
In the past few years, Temasek has been investing around USD 1 billion per year in India, which is about 5 per cent of its global investments. They recently invested in Ola Electric, a company valued at USD 2.7 billion. Electric vehicle manufacturers are attracting more investors, with Ather Energy securing Rs 900 crore from existing investors including Hero MotoCorp and Singapore’s GIC.
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