Singapore’s Temasek, a prominent investment firm, has spearheaded a $140 million funding round for India’s Ola Electric, valuing the e-scooter manufacturer at $5.4 billion, according to two sources familiar with the matter. This investment marks a significant milestone for Ola Electric as it prepares for its impending initial public offering (IPO).
The funding round has already been successfully concluded, and Ola Electric is expected to receive the funds within the next week. Additionally, there are plans for another round of fundraising before the company files its IPO papers, aiming to raise up to $1 billion in late 2023, as disclosed by the first source.
Ola Electric has not provided any comments in response to Reuters’ request, while Temasek, an existing investor in Ola Electric, has declined to make an official statement.
Founded by Bhavish Aggarwal and supported by Japan’s SoftBank Group (9984.T), Ola Electric has established itself as the leader in India’s e-scooter market, boasting a 32% market share. It competes with other players like Ather Energy, TVS Motor (TVSM.NS), and Hero Electric.
The company’s valuation has risen from $5 billion last year, and its sales data for April to August 2023 shows that Ola sold approximately 95,000 e-scooters. Despite this growth, it reported an operating loss of $136 million against a revenue of $335 million for the fiscal year ending in March 2023, according to Reuters.
The Indian government has set an ambitious target for electric two-wheelers, including motorcycles, to constitute 70% of total two-wheeler sales by 2030, a substantial increase from the current 14%.