IPO-bound Ola Electric has successfully raised Rs 100 crore (approximately $12 million) in debt from Alteria Capital. This marks the second round of debt financing for the Bengaluru-based electric vehicle manufacturer in 2024.
The board at Ola Electric passed a special resolution to issue 10,000 non-convertible debentures at an issue price of Rs 1,00,000 each, securing a total of Rs 100 crore. Regulatory filings accessed from the Registrar of Companies (RoC) confirm this development.
This funding round follows closely on the heels of a $50 million debt financing obtained from EvolutionX two months prior. The debentures carry an interest rate of 13.8% per annum, with an additional 2% interest per month applied in case of default on interest payments.
According to startup data intelligence platform TheKredible, Ola Electric, led by Bhavish Aggarwal, has raised over $1 billion through both equity and debt financing, achieving a valuation of $5.4 billion during the last round.
In December 2023, Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aiming to raise Rs 5,500 crore ($660 million). Media reports indicate that the company has received approval from SEBI for the public listing.
Based on the DRHP, Bhavish Aggarwal is the largest stakeholder in Ola Electric, holding 36.94% of the company, followed by SoftBank with a 21.98% stake. Other significant stakeholders include Tiger Global, Indus Trust, and Alpha Wave, owning 6.03%, 3.85%, and 3.49% respectively.
Ola Electric has demonstrated impressive growth, with its revenue surging seven-fold to Rs 2,631 crore in FY23, up from Rs 373 crore in FY22. However, its losses also increased by 87.76% to Rs 1,472 crore for the fiscal year ending March 2023.
In the competitive two-wheeler electric vehicle market, Ola Electric stands out, holding a 49% market share. According to Vahan data, the company registered 37,191 e-scooters in May, competing with notable players such as Hero Electric, Ather Energy, and TVS.
This strategic debt financing is poised to bolster Ola Electric’s financial position as it prepares for its upcoming IPO while continuing to drive growth and innovation in the electric vehicle sector.
Source: Entrackr
