Ola Electric Secures $300 Million Funding At $6 Billion Valuation The latest fundraise will be used by the company to immediately ramp up its capacity of electric two-wheelers from 0.5 million to 2 million per annum, as per the report
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Electric scooter manufacturer Ola Electric has raised $300 million in its most recent funding round, according to a Business Standard report, citing merchant banking sources. With this latest development, the company's valuation is reportedly expected to touch the $6 billion valuation mark.
The company had raised $200 million at a valuation of $5 billion in January 2022 from investors like Tekne Private Ventures, Alpine Opportunities Fund, and Edelweiss. The company has so far raised nearly $900 million in multiple funding rounds. The latest fundraise will be used by the company to immediately ramp up its capacity of electric two-wheelers from 0.5 million to 2 million per annum, as per the report.
According to the report, the funds will also help the firm to set up an advanced cell chemistry battery plant, for which it is already eligible for incentives under the production-linked incentive scheme, adding that an electric passenger car facility is also in the works and may come to fruition sometime next year.
The report further noted that the latest funding round was led by a leading sovereign fund company and SoftBank Group, which was one of the first major investors in the company, didn't participate in the latest round.
Furthermore, the company has laid out a plan to eventually build a 10-million per annum two-wheeler plant and also increase its cell-making battery capacity from 20 gigawatt-hours (GWH), for which it is eligible for PLI, to 100 GWH to meet its captive requirement.
According to the VAHAN data, in April this year, the electric two-wheeler manufacturer clocked its highest sales registrations since its launch at 21,560 electric scooters, grabbing 34% of the market.