IPO-bound Ola Electric reports 510% revenue growth in FY23
Electric vehicle (EV) maker, Ola Electric logged a whopping 510% increase in its consolidated revenue for the financial year ending March 2023 (FY23), reaching Rs. 2,782 crore. Despite this growth, the company's net loss widened to Rs. 1,472 crore due to increased expenses. This news comes as Ola Electric gears up for its initial public offering (IPO) in early January 2024. CEO Bhavish Aggarwal believes the FY23 financials will be a "positive surprise."
EBITDA loss and future projections
In FY23, Ola Electric reported an EBITDA loss of Rs. 1,318 crore, with total expenses reaching Rs. 3,383 crore. The company has shared its plans with investors and bankers to achieve EBITDA profitability of Rs. 803 crore by FY25 and reduce its EBITDA loss to Rs. 950 crore in FY24. Ola Electric expects revenues of Rs. 4,655 crores in FY24 and projects its sales to hit three lakh units in FY24 and nine lakh units by FY25.
Funding and IPO preparations
Recently, Ola Electric completed a funding round of Rs. 3,200 crore, which included a mix of debt and equity from leading investors like Temasek and debt from the State Bank of India (SBI). Moneycontrol had reported that Kotak Mahindra Capital and Goldman Sachs have been enlisted for the IPO process. In FY22, Ola Electric's losses widened by nearly 293% to Rs. 784 crore as its expenses rose by around 306% year-on-year.
