Ola Electric may be valued at $4.5 billion in its upcoming IPO, 16-20% less than its previous funding round in October 2023 where it raised $384 million at a valuation of $5.4 billion led by Singapore’s investment company Temasek.
While Ola Electric’s founder Bhavish Aggarwal had set a target for a $6 billion valuation for the upcoming IPO, its already shrunken valuation due to recalibration of tech stock valuations on a global level could still vary as the final valuation is still under process.
In 2023, the EV producer got SEBI’s approval for public issue and filed its draft red herring prospectus for IPO worth Rs 5,500 crore. It had secured $50 million in debt funding from EvolutionX Debt Capital through the issue of non-convertible debentures (NCDs) earlier in 2024. The company’s filings with the Registrar of Companies (RoC) reveal that these funds were raised by issuing 41,000 NCDs worth 1 lakh per unit.
Ola Electric was cofounded by Agarwal in 2017 and is one of the major two-wheeler EV manufacturers in the Indian EV space with five scooter models. As of October 2023, Its omnichannel distribution network extends to 935 experience centers and 414 service centers.
Agarwal-led EV startup’s net loss was noted at Rs 1,471.6 crore in FY23, 88% more than 783.4 crore in FY22. Additionally, its revenue from operations went up by 605% from Rs 373.8 crore to Rs 2,630.9 crore in the same period. The company has initiated operations streamlining and cost cut on the company-level, sacking around 400-500 employees.
