Electric scooter startup OLA Electric suspends its electric car launch in India ahead of planned IPO

Ola Electric, a SoftBank-backed electric scooter startup, has suspended its electric car launch in India to focus on its e-scooter business to focus on its thriving e-scooter business, according to Reuters, citing sources close to the matter.

The move comes as the company gears up for a significant $660 million initial public offering (IPO) slated for August.

Founder Bhavish Aggarwal had previously unveiled plans in 2022 for an electric sports car featuring an all-glass roof and impressive performance specs, boasting a 0-100 km/h acceleration in just four seconds. However, despite reaffirming these goals in a September 2023 Forbes interview, sources indicate that the project has been shelved indefinitely as the company doubles down on its e-scooter business, Reuters reported.

Sources told Reuters that the suspension of Ola’s car venture reflects the broader challenges facing the electric vehicle (EV) market in India, including the underdeveloped charging infrastructure. As the startup prepares for its IPO, which follows prior reports of investor discussions in Singapore and the U.S., the focus has shifted to consolidating its position in the two-wheeler segment.

Despite the electric car setback, Ola Electric’s e-scooters have gained significant traction. The company achieved a 46% market share in the e-scooter sector within three years of its inception. In contrast, electric car sales in India totaled only about 45,000 units by mid-2023, compared to nearly half a million e-scooters sold in the same period.

The decision to prioritize e-scooters underscores the company’s strategy to address immediate market demands and infrastructure limitations. Ola Electric’s commitment to the two-wheeler market includes ongoing advancements in battery production and sales strategies, with plans for further expansion in Tamil Nadu.

In June 2023, we reported about Ola Electric following reports that the Bengaluru-based electric scooter startup was in talks with potential investors in Singapore and the United States as part of the company’s preparations for its IPO, which is projected to raise up to $1 billion.

As Ola Electric prepares for what is expected to be one of India’s largest IPOs this year, it is also ramping up efforts to engage with potential investors across Singapore, the United States, and the United Kingdom. The company continues to pursue its vision of revolutionizing electric mobility in India, while the future of its electric car initiative remains on hold.

Founded in 2017 by Ankit Jain and Anand Shah, Ola Electric is a subsidiary of Ola, India’s leading ride-hailing platform. The company remains dedicated to delivering sustainable, accessible, and affordable electric transportation solutions, reinforcing its commitment to the EV market and setting the stage for a transformative IPO debut.