Mumbai:Ola Electric has raised more than $200 million from Falcon Edge and SoftBank Group Corp., among others, at a valuation of $3 billion, the EV arm of the ride-hailing startup said.
The funding will strengthen
Ola’s “Mission Electric”—only electric two-wheelers to be sold in India after 2025—and accelerate development of other vehicle platforms, including electric motorcycles, mass-market scooters
and an electric car, according to a statement.
“I thank our existing investors and welcome new ones to Ola. Together we will bring mobility to a billion and sustainability to the future,” Ola CEO Bhavish Aggarwal said.
India is building technologies of the future and becoming a global EV hub! With this raise, we will accelerate our… https://t.co/0JkTtBjmee— Bhavish Aggarwal (@bhash) 1633004693000
This is Ola Electric’s fifth fundraising—excluding the
$10 million it received from Bank of Baroda last year—since inception,
according to Tracxn data. The company counts Hyundai Motor Co, Tiger Global and Matrix Partners India and Ratan Tata as among its investors.
Set up in 2017 to run electric taxis, Ola Electric diversified into manufacturing electric vehicles after the pandemic crippled the company’s ride-hailing business. In Feburary, the company launched the Ola Futurefactory—touted as the world’s biggest electric two-wheeler plant—near Krishnagiri in Tamil Nadu.
Ola is also getting into the used car business, even as its taxi vertical
is showing signs of revival.
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The announcement of the fundraising comes two weeks after
Ola sold electric scooters worth Rs 1,100 crore during the two days that the purchase window was open.
restarted on September 15 sales and bookings of its electric scooters—S1 and S1 Pro—on the Ola app only, after the website built for purchases
ran into technical difficulties in the previous week. Sales reached a peak of four units per second on September 16, Aggarwal had tweeted then.
“In total over two days, we have done over Rs 1,100 crore in sales! This is unprecedented not just in the automotive industry but it is one of the highest sales in a day (by value) for a single product in Indian e-commerce history,” Aggarwal said in a blog post. “We truly are living in a digital India.”
The purchase window is now closed, but the scooters can still be reserved on Ola Electric’s website. The sale will restart on November 1.
Ola wants to be the Tesla of affordable EVs
The Ola electric scooter
undercuts rival offerings from Ather Energy, Bajaj Auto and TVS Motors on the price front but still promises greater range and higher performance.
Launched at a starting price of Rs 99,999, includes FAME II subsidies but excluding state-level tax breaks, the Ola electric scooters come in two variants:
- The cheaper Ola S1, which gets a 2.98 kWh battery pack good enough for travelling 121 km on a single charge. The top speed is restricted at 90 kmph.
- The costlier Ola S1 Pro, which gets a 3.97 kWh battery pack with a range of 181 km. It has a top speed of 115 kmph.
Ola will also roll out an at-home service network in every city where it sells its EVs and said that buyers can expect a 40% lower total cost of ownership for its EVs as compared to petrol-powered scooters in the market today.
The scooters also include features such as keyless lock/unlock, different modes and profiles for different riders, and will even allow riders to set moods that will change the sound and display graphics. Both models will also get a reverse mode and hill-hold assist.
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“Only around 160 million people in India today own a two-wheeler and that will increase significantly,” Aggarwal
had said at the launch event on August 15. “While we need our people to own mobility solutions, we can’t let that be petrol vehicles. The only way out is to accelerate this electric journey, and that’s the vision with which we started Ola Electric.”