India’s Ola Electric is planning to raise $661.8 million by offering new shares in an initial public offering. The startup has recently raised $384 million in a funding round, and is targeting a valuation of $6.5 billion to $8 billion in the IPO, according to the company’s draft papers filed with the market regulator.
The company’s IPO will also involve the sale of 95.2 million shares from existing investors and shareholders, including founder Bhavish Aggarwal, Alpha Wave Ventures, Tiger Global, Matrix Partners, and SoftBank, as outlined in the draft prospectus. A number of banks including Kotak, Citi, Bank of America, Goldman Sachs, Axis, ICICI, SBI and BOB Capital are running the book for the IPO.
Ola Electric plans to use $150 million of the proceeds to expand its electric vehicle cell factory and have plans to expand into cars, batteries, and cells alongside a major EV expansion into a large manufacturing hub in India.
Ola Electric’s shareholding. Image Credits: Ola Electric DRHP
Led by Aggarwal1, Ola Electric emerged out of the ride-hailing giant Ola in 2019. It’s worth noting that Ola Electric already leads the EV scooter market in India, with 35% of the market share.
In the fiscal year 2023, Ola Electric reported losses of $176 million, and also highlighted a high employee attrition rate and other risk factors in its IPO filing.
Ola Electric’s IPO is a significant move, as it marks the first IPO by a two-wheeler maker in India in over 15 years.
1. Ola Electric says in the DRHP:
2. Ola Electric says: