Ola Electric, a subsidiary of ride-hailing giant Ola, has been making massive strides in the electric vehicles (EV) sector. The company is now taking the next step towards launching an Initial Public Offering (IPO) to finance its ambitious vision to build the world’s largest and smartest EVs and charging infrastructure.
Enlisting Goldman Sachs and Kotak
Ola Electric has enlisted Goldman Sachs and Kotak Investment Bank for the IPO, targeting a listing at the end of 2023. It follows the news that the company is also in talks with Softbank Vision Fund 2 for a new fundraising round.
The company said an IPO would help it establish a market value and capitalize on its significant growth toward becoming a leader in electric vehicles, batteries, and charging infrastructure. The company also stated that the IPO would enable it to tap into the public markets and further develop its platform and technology while providing investors with new opportunities to participate in its mission.
Investor Appetite for EV Sector
There has been a growing investor interest and appetite for electric vehicle companies recently. Ola Electric is the latest in a string of EV-related companies to target IPOs. Several other companies, such as Tesla Inc and Nio Inc, have also launched or are preparing for IPOs soon.
The demand for electric vehicles has increased in India due to the government’s strong focus on electric mobility as its plan to reduce emissions. It has resulted in a slew of new players in the market and a strong investor appetite.
Ola Electric’s Journey
They found Ola Electric in 2017 to accelerate the transformation to sustainable mobility in India. The company has made several moves to capitalize on the growing demand for electric vehicles. Most recently, it announced plans to invest Rs 2,400 crore in setting up a 2GWh EV battery and electric motor manufacturing plant in Tamil Nadu, India.
In the last fiscal year, the company reported a revenue of Rs 175 crore as compared to Rs 336 crore in the previous fiscal year. Ola Electric also reported a loss of Rs 1,160 crore in FY2020.
A Big Step Forward
The IPO news is a big step forward for Ola Electric as it seeks to raise funds to meet its ambitious growth targets. The company is already operating in over 200 cities in India and is expanding its network to 500 cities in the next few years. The IPO would also help it accelerate its development of EV models and charging infrastructure in India.
The decision to go public is a positive move for Ola Electric and its vision to develop the world’s largest and smartest EV and charging infrastructure. Not only will the IPO provide the company with the necessary funds to move forward with its plans, but it will also put Ola Electric on the public markets and provide investors with new opportunities to invest. With Goldman Sachs and Kotak Investment Bank on board, Ola Electric looks ready to make its IPO dreams a reality by the end of 2023.