Indian electric scooter startup OLA Electric in talks with investors about its $1 billion planned IPO

Ola Electric, a Bengaluru, India-based electric scooter startup, is reportedly gearing up for its highly anticipated stock market listing, according to Reuters, which first reported the story.

Citing sources familiar with the matter, Reuters said that the six-year-old startup is scheduled to hold talks next week with potential investors in Singapore and the United States as part of its preparations for the initial public offering (IPO), which could raise up to $1 billion.

This series of meetings marks the beginning of Ola Electric’s journey toward going public, a significant milestone for the company and the Indian electric mobility industry as a whole. The talks also reflect the growing investor interest in Ola Electric and the promising future of electric scooters in the Indian market.

The sources told Reuters that Ola, which makes electric scooters and is backed by investors such as SoftBank and Temasek, has plans to raise between $600 million and $1 billion in its initial public offering (IPO), which is planned for late 2023.

According to insiders cited by Reuters, Ola Electric, a popular electric scooter maker in India backed by investors like SoftBank and Temasek, is charting its course for a significant initial public offering (IPO). The company aims to secure a substantial funding range of $600 million to $1 billion through its IPO, slated for the latter part of 2023, Reuters reported.

This strategic move highlights Ola Electric’s ambition to fuel its growth and capitalize on the burgeoning demand for electric scooters. With its IPO on the horizon, Ola Electric is poised to attract the attention of investors and further solidify its position in the dynamic and rapidly expanding electric mobility market.

Founded in 2017 by Ankit Jain and Anand Shah, Ola is an electric vehicle (EV) manufacturing and mobility company that’s revolutionizing the electric mobility space in India. The startup also works with vehicle and battery manufacturers, cities, driver-partners, and the mobility ecosystem to make electric mobility a reality in India

OLA Electric is a subsidiary of OLA, one of India’s leading ride-hailing platforms. With a vision to create sustainable, accessible, and affordable electric transportation solutions, OLA Electric is focused on designing and manufacturing electric scooters, electric bikes, and other EV products.

As it gears up for its upcoming IPO, the company is taking proactive steps to engage with potential investors and highlight the immense business opportunities presented by India’s emerging electric vehicle (EV) market. In a departure from the usual timeline, Ola’s founder and CEO, Bhavish Aggarwal, will embark on a series of investor meetings in Singapore, the United States, and the United Kingdom over the next two weeks.

While the plans are confidential, the sources told Reuters that Aggarwal is expected to meet with prominent investors such as BlackRock, Singapore’s sovereign wealth fund GIC, and renowned mutual funds like T Rowe Price.

“EVs are still an emerging space and while there are some global parallels, it is an even newer story in India. So Bhavish wants to take the extra time to create comfort for investors,” said the first source.

These meetings serve as a platform for Ola Electric to showcase its vision, strategy, and growth prospects to key stakeholders who are interested in participating in the company’s journey toward reshaping the Indian EV landscape. By engaging with influential investors, Ola Electric aims to generate enthusiasm and secure potential partnerships that will further bolster its position in the market as it moves closer to its IPO.

India is currently one of the world’s largest automotive markets, and its electric vehicle (EV) segment is gaining momentum rapidly. Ola Electric, a key player in the Indian market, claims to hold the leadership position in e-scooters, with a monthly sales volume of approximately 30,000 units. Priced at around $1,600 per scooter, Ola Electric has positioned itself as a prominent player in the affordable EV segment.

Sources suggest that Ola Electric is preparing to file regulatory papers for its IPO, with the aim of obtaining approval by August. In the lead-up to this milestone, the company has scheduled investor meetings to delve into its e-scooter business, growth prospects, and expected valuation, projected to surpass $5 billion.

While Ola Electric asserts its market dominance, it faces competition from both startup ventures and established companies such as TVS Motors, Ather Energy, and Hero Electric, all of which are intensifying their efforts to expand their presence in the EV scooter market.

As the Indian EV landscape continues to evolve, Ola Electric’s forthcoming IPO signifies a significant moment for the company, positioning it to capitalize on the country’s growing appetite for sustainable transportation solutions. Through its investor meetings and regulatory filings, Ola Electric aims to showcase its robust business model, market leadership, and potential for future growth, solidifying its position as a key player in India’s dynamic electric mobility sector.