Published On: Thu, Oct 26th, 2023

Temasek and SBI Invest $384 Million in India’s Leading EV Startup, Ola Electric

Temasek and SBI Invest 4 Million in India’s Leading EV Startup, Ola Electric
Temasek and SBI Invest 4 Million in India’s Leading EV Startup, Ola Electric

Ola Electric, the leading electric vehicle startup based in Bengaluru, announced a significant funding milestone, securing $384.43 million. While the company’s association with ride-hailing giant Ola remains a topic of discussion, an insider revealed that over $200 million of this funding is debt-based. The company’s valuation, post this round, stands below $5.5 billion.

Despite sharing resources with Ola, Ola Electric maintains its distinct identity. Both companies, represented by the same communications team, chose not to comment on this matter.

The recent funding round was spearheaded by Singapore’s sovereign wealth fund, Temasek. Additionally, the State Bank of India, backed by the Indian government, played a pivotal role in the debt financing, as per the official statement from Ola Electric.

Ola Electric’s dominance in the electric scooter market is evident with the launch of multiple variants of its S1 electric scooter model. The company boasts a market share exceeding 30%, as per industry insights.

JP Morgan analysts highlighted the cost-effectiveness of EVs in a recent note, stating, “Despite subsidy cuts, high-end EVs are still 13-23% more affordable than traditional ICE scooters over a five-year ownership period. Notably, Ola’s S1 Air and X models are even more cost-effective than basic motorcycles when considering total cost of ownership.”

Despite facing a loss exceeding $130 million in the last financial year, Ola Electric plans to channel the newly acquired funds towards expanding its EV footprint. The company aims to establish “India’s premier lithium-ion cell manufacturing facility” in Krishnagiri, Tamil Nadu.

Bhavish Aggarwal, the visionary founder and CEO of Ola Electric, shared his ambitious goals, stating, “Our mission at Ola is to transition the automobile industry away from ICE. Our upcoming Gigafactory will significantly bolster India’s position as a global EV powerhouse.”

“Our commitment lies in pioneering core EV technologies. We’re rapidly scaling our manufacturing capabilities to promote sustainable mobility. We’re grateful to our investors and lenders for their unwavering faith in Ola’s mission and their continued support.”

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