Ola Electric raises Rs. 3,200cr to build Lithium-ion cell facility
EV maker Ola Electric has revealed that it has closed a funding round worth Rs. 3,200 crore (about $380 million). The funds were obtained through a combination of debt and equity from notable investors, including Temasek, and debt from the State Bank of India (SBI). This fundraising effort is part of Ola's strategy to raise between $300 and $400 million before its planned public listing.
Funds to expand EV business and establish Lithium-ion cell factory
The company intends to utilize the funds to grow its EV operations and establish India's premier Lithium-ion cell production facility in Krishnagiri, Tamil Nadu. Ola Electric expressed its dedication to creating core technologies for EVs and cell manufacturing in a statement, with founder and CEO Bhavish Aggarwal saying, "We are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility."
Ola Electric's fundraising history
Before this funding round, Ola Electric secured $140 million from Temasek in September and $200 million from Edelweiss, Tekne Private Ventures, and other investors in January. The firm has enlisted Goldman Sachs and Kotak Mahindra Capital to oversee its initial public offering (IPO) in early 2024. In related news, Ather, a close competitor of Ola Electric, announced on September 6 that it had raised Rs. 900 crore from existing investors Hero MotoCorp and GIC via a rights issue.
