According to two people familiar with the matter, Ola Electric has entered advanced discussions to raise more than $500 million through a new round of financing. This is to help scale up its South Asian electric vehicle manufacturing operations.
Falcon Edge Capital has begun talks with the leader of the round. Ola Electric is valued at between $2.5 billion and $3 billion, up from $1 billion in the previous fundraise. TechCrunch sources said that Falcon Edge Capital is currently in advanced discussions. TechCrunch requested anonymity because the matter is confidential. The people claimed that Temasek in Singapore is also having conversations.
The talks come at a time when ride-hailing giant Ola, the initial parent firm of Ola Electric, is looking to file for an initial public offering. The firm, which recently raised $500 million, has signed up a few bankers and is looking to file for the IPO later this year, according to a third person familiar with the matter.
According to the source, the firm plans on raising as high as $1 billion. However, this person cautioned that it is still not final. Indian media reported the IPO discussions first.
Ola Electric’s first electric scooter was launched earlier this month. It is called Ola S1. The price of the Ola S1 is 99,999 Indian Rupees or $1,350. On a full charge, the electric scooter can travel 121 km (75 miles).
“Ola has features that are significantly superior to those of its peers and is currently the most popular product on the market. Despite all the resources they have, incumbents launched products that look like another ICE product but lack the punch. “We have been disappointed in both TVS and Bajaj on this front in general,” Bernstein analysts wrote earlier in the month to clients.
Although startups like Ather made great efforts to develop the product, high prices, slow manufacturing speed up and a limited launch in a handful of cities were key factors for low sales. Ola’s key differentiators are 1) Software-based features; 2) Range, peak speeds and acceleration (fastest electric scooter currently); 3) Boot space, and 4) Color options.
Ola / Ola Electric did not immediately reply to a request.
Publié Mon, 30 August 2021 at 09:18:41 +0000