Ola Electric, an e-scooter manufacturer, has secured Rs 3,200 crore of funding. The fresh investment comes from a group of investors led by Temasek and the State Bank of India, with the purpose of fuelling the expansion of Ola Electric’s electric vehicle business.
According to the company, the funds will be utilised to establish a state-of-the-art lithium-ion cell manufacturing facility, known as the ‘Gigafactory,’ in Krishnagiri, Tamil Nadu.
The implementation of the Gigafactory will occur in two phases. Initially, it will boast a capacity of 5 GWh, gradually escalating to an impressive 100 GWh over time. This strategic move aligns with Ola Electric’s long-term growth objectives.
The fresh fundraise is very crucial for the startup as it prepares for its upcoming initial public offering (IPO). The company aims to raise USD 1 billion in net proceeds, valuing the firm at an estimated USD 10 billion. Ola Electric plans to file its draft red herring prospectus by the end of October 2023, as reported by Reuters. Primed for success, the company has already enlisted the expertise of investment bankers to underwrite its IPO.
In addition to the aforementioned investors, such as SoftBank, Tiger Global and Kia Motors, Ola Electric has garnered interest from investment partners like Edelweiss, Matrix Partners and Alpha Wave Investors. Some of these investors have expressed their intention to sell their stakes during the company’s IPO, indicative of the high expectations surrounding Ola Electric’s future growth.
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