Ola aims to raise over ₹7,000-cr fund after launch of S1 e-scooter: Reports1 min read . Updated: 27 Aug 2021, 02:38 PM IST
According to a report published in Hindustan Times, Ola Electric is in talks with JP Morgan to raise $ 1 billion to fund expansion and gain market share in the electric two-wheeler segment.
Ola Electric, which recently launched its first electric scooter S1 in India, is looking to raise around $1 billion fund. According to reports, the electric two-wheeler startup led by Bhavish Aggarwal is in talks one of the leading global investment bank JP Morgan.
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Bhavish Aggarwal, CEO of Ola Electric Mobility, aims to raise this fund for future expansion plans and gain market share in the electric two-wheeler segment. Earlier in July this year, the company had raised $100 million (nearly ₹750 crore) from Bank of Baroda.
Ola Electric is in the final phase of constructing its ambitious Futurefactory, the facility where it manufactures electric scooters, near Chennai. Ola had said that it has invested ₹2,400-crore for this facility in Tamil Nadu which aims to be the world's largest two-wheeler manufacturing unit. Electric two-wheelers manufactured at this facility will not only be sold in India, but also international markets like Europe, the UK, Latin America, Australia, and New Zealand.
Besides the Ola Futurefactory, the EV maker also has ambitious plans to set up a 'Hypercharger Network' that will have around one lakh charging points across 400 cities in India.
According to a report published by Hindustan Times, Ola Electric has hired JP Morgan. Sources have revealed that the global investment banker has already approached several large private equity funds to raise the amount. Sources also say that some of the existing investors may sell some stakes in the next funding round.
Ola had launched the S1 and S1 Pro variant of its first electric scooter in India on August 15. The scooters were launched at an aggressive price of ₹99,999 which go up to ₹1.3 lakh for the S1 Pro variant. It aims to rival electric two-wheelers from Ather Energy, Bajaj Auto and TVS Motors.
Ola Electric Mobility was born four years ago as a fully owned unit of the popular cab aggregator. Later, Bhavish Aggarwal had bought out majority of the stake to lead the electric two-wheeler business unit. He recently said that the company also aims to manufacture electric cars as well in near future.
(Source: Hindustan Times)