Will the SoftBank backed company be able to sail on the wave of EV revolution in India?
India is witnessing its major IPO wave in 2021. After Zomato made headlines in July 2021 by gathering jawdropping figures through its IPO, other unicorns and major Indian tech companies are lined up to gain from the frenzy- Paytm, Delhivery, Policy Bazaar, Flipkart, LIC, Kalyan Jewelers, among others.
Another big name has announced its plans to go public next year- the ride-hailing Indian firm Ola. In conversation with CNBC, company’s Chairman and CEO Bhavish Aggarwal said that both Ola and Ola Electric will be launching IPO sometime next year.
Aggarwal told that the company has adequate capital and balance sheet to go public and has already been approved by CCI for $500 million investments from Temasek, Warburg Pincus, among others.
According to Bloomberg, Ola is already in talks with major bankers to handle its upcoming IPO, the exact date of which is yet to be decided.
INDIA’S EV REVOLUTION TO PLAY BIG ROLE IN OLA’S FUTURE
In July, 2021, Ola bagged $500 million from investors like Fort Canning Investments to raise its initial share issue. Founded in 2011 and based out of Bangalore, this Indian company also offers services in the U.K., Australia and New Zealand. Currently, more than 1 million drivers are associated with Ola in over 100 cities in and outside India.
Earlier in July 2021, the company expanded its Employee Stock Options Pool (ESOP) with additional Rs. 400 crore in stocks for its initial public offering. Its ESOP then stood at Rs. 3,000 crore.
While the transportation sector has been hit severely due to COVID-19 pandemic, the future of Ola is actually bright. Ola Electric has the biggest role to play in this direction.
Ola Electric has set up a manufacturing site in Krishnagiri, Tamil Nadu, spread in an area of 500-acres, to produce electric scooters. With an annual capacity of 10 million vehicles, Ola Electric has signed a 10-year debt financing agreement with Bank of Baroda to finance the first phase of factory.
The Krishnagiri manufacturing unit aims at the target of two million electric vehicles by the end of 2021. The company introduced its much-awaited electric scooters on the occasion of 75th Independence Day- Ola S1, with two variants- Ola S1, and Ola S1 Pro, priced at Rs. 99,999 and Rs. 1,29,000 respectively.
The models will be available for purchase from Sept 8. So far, Bhavish Agarwal has revealed company’s plan of selling electric two-wheelers, three-wheelers and cars. Soon Ola will also make a debut in the auto retail sector of India.
“We will start with India like markets soon, and we will start with the two-wheelers. There is a latent need for electric two-wheelers even in these markets, and there are yet to be players that have cracked it. Our product is at the top in terms of design, technology, and power. I guarantee even the top companies haven’t looked at EV the way we have.”
Founder and Group CEO Bhavish Agarwal explained company’s “mission electric“, a pledge to completely take over the petrol scooters sales in India by 2025.
Started in 2016, the leading Mobility firm of India gained the “unicorn” status in July 2019, gaining $1billion valuation in record time. So far, the total funding raised by the ANI Technologies (parent company of Ola) amounts to $4.6 billion from 48 investors. Ola’s IPO will be issued under the name of the parent company ANI Technologies