In the fast-paced world of electric two-wheelers in India, Ola Electric stands tall as a beacon of innovation and progress. From the sheer quality of its electric vehicles to the exciting prospect of its forthcoming Gigafactory in Tamil Nadu, Ola Electric is making headlines for all the right reasons.
Securing Fresh Funds
In the quest to further its electric revolution, Ola Electric is currently embarked on a monumental journey—the Series E Round. What’s fascinating is that they’ve already clinched an impressive initial investment of $140 million.
While Ola Electric prefers to maintain an air of mystery around its fundraising endeavors, our team at Entrackr has gone the extra mile, meticulously dissecting regulatory filings to unveil the story behind this financial spectacle. The numbers speak volumes – Ola Electric is on a mission to secure a staggering $300 million, and they’ve already pocketed a substantial $143 million.
Breaking Down the $300 Million Round
Let’s take a closer look at the anatomy of this colossal funding round. Ola Electric has issued a whopping 239.8 crore Series E preference shares, each with a face value of Rs 10 per share. This strategic move has resulted in a grand total of 2,398 crore or $300 million raised, as per the official filings with the Ministry of Corporate Affairs.
Some major players in this high-stakes game include Temasek, along with its investment arms V-Sciences and MacRitchie, contributing an eye-popping sum of Rs 1,518 crore or $190 million. Blue Investments and DIG Investments have also thrown their hats into the ring, injecting Rs 333 crore and Rs 290 crore, respectively.
Not to be outdone, investors like Tiger Global, Tekne Private Ventures, and Ashutosh Vinayak Joshi have made substantial contributions of Rs 165 crore, Rs 41.3 crore, and Rs 50 crore, respectively.
As for Ola Electric’s response to all the intrigue? They’ve chosen silence, declining to comment on this captivating narrative.
Ola Electric’s latest funding round isn’t just big—it’s monumental. In fact, it’s the largest funding round ever witnessed in the electric vehicle sector, as of September this year. The official filings reveal that the company has successfully secured Rs 1,143 crore or $143 million. To get a better understanding, let’s dive into the graph below for a detailed breakdown.
Based on estimations by TheKredible, Ola Electric’s post-allotment valuation is projected to soar to approximately Rs 44,410 crore or $5.4 billion. This represents an astonishing leap from its $5 billion valuation just last January. In a remarkable twist, Ola Cabs, the ride-hailing sibling of Ola Electric, faced a 50% valuation drop, plummeting to $3.5 billion at the close of May, a revelation made by its investor Vanguard. It’s worth noting that in 2021, Ola boasted a valuation of $7.3 billion.
A Remarkable Journey
Even before this Series E funding, Ola Electric had already amassed a substantial war chest of $800-900 million. According to insights from startup data intelligence platform TheKredible, SoftBank emerges as the largest external stakeholder, holding an impressive 23.6% stake. Not far behind are heavyweight investors like Tiger Global, Matrix, and others. Perhaps the most notable fact is that Bhavish Aggarwal, the founder and CEO of Ola Electric, commands a remarkable 36.6% stake, and this is before the Series E round.
In the competitive electric vehicle landscape, Ola Electric stands as a lone unicorn, shining brightly with its unique status. On a related note, its close competitor, Ather Energy, recently secured a substantial $108 million from its existing backers, GIC and Hero MotoCorp. While Ather Energy was poised to join the coveted unicorn club, they opted for a right issue instead of an equity fundraise. Previously, the firm was valued at $750 million.
In closing, the story of Ola Electric’s Series E financing round is nothing short of a captivating saga. It’s not just a significant milestone for the company but also a testament to the growing prominence of electric vehicles in India’s dynamic market. As Ola Electric continues to innovate and expand, it’s poised to play a crucial role in shaping the future of sustainable transportation.