Ola Electric, an emerging leader in India’s electric vehicle (EV) sector, is set to make a significant leap by filing for an Initial Public Offering (IPO) to raise ₹5,500 crore (approximately $662 million). This move marks a pivotal moment for the company and the Indian EV industry, as it will be the first IPO by a two-wheeler maker in the country since Bajaj Auto’s debut in 2008.
Key Highlights of Ola Electric’s IPO:
- Expansion Plans: Ola Electric intends to use around $150 million of the IPO proceeds to expand its electric vehicle cell factory’s manufacturing capacity from 5 gigawatt hours to 6.4 gigawatt hours. The company is also eyeing significant expansion into electric cars, batteries, and cells, with a major manufacturing hub planned in India.
- Company’s Growth and Market Presence: Ola Electric, established out of the ride-hailing giant Ola in 2019, has shown remarkable growth. In fiscal 2023, the company led the Indian incorporated electric 2-wheelers (E2Ws) in terms of revenue. Ola Electric has introduced several new lower-priced variants of its flagship S1 electric scooter model and an upgraded version, leading to its dominant position in the EV scooter market in India with about 35% market share.
- Financial Performance: For fiscal year 2023, Ola Electric’s revenue from operations was ₹2,630.93 crore, a significant increase from ₹373.42 crore the previous year. Despite this impressive growth, the company reported losses of $176 million in fiscal 2023.
- Future Product Lineup: Ola Electric has announced new scooter models like the Ola S1 X (2 kWh) and Ola S1 X (3 kWh), with plans to start deliveries of these models in the first half of Fiscal 2025. The company is also working on a line-up of four motorcycle models – Diamondhead, Adventure, Roadster, and Cruiser, with deliveries expected in the first half of Fiscal 2026.
- Technology and Innovations: In September 2023, Ola Electric launched MoveOS version 4, which included features like navigation powered by Ola Maps, geofencing, anti-theft alert, and energy insights. Their EV scooters are connected to a network, enabling continuous enhancement of product features and performance.
- Distribution Network: The company operates a direct-to-customer (D2C) omnichannel distribution network, which includes 935 experience centres across India, comprising 414 service centres as of October 31, 2023.
- Government Incentives and Approval: Ola Electric has been approved for India’s Production-Linked Incentive (PLI) schemes, which include manufacturing of advanced automotive technology products and advanced cell chemistry batteries.
- Stake Sale and Book Running: The IPO also involves the sale of approximately 95.2 million shares from existing investors and shareholders. The book running for the IPO is being managed by several reputed banks and financial institutions.