Ola Electric secures $ 200 million in funding for $ 3 billion valuation

Bombay: Ola Electric has raised more than $ 200 million from Falcon Edge and SoftBank Group Corp., among others, for a valuation of $ 3 billion, the rideshare startup’s EV arm said.

The funding will bolster Ola’s “Electric Mission” – the only electric two-wheelers to be sold in India after 2025 – and accelerate the development of other vehicle platforms, including electric motorcycles, consumer scooters and a electric car, according to a statement.

“I thank our existing investors and welcome new ones to Ola. Together we will bring mobility to a billion and sustainability in the future, ”said Ola CEO Bhavish Aggarwal.

This is Ola Electric’s fifth fundraiser, excluding the $ 10 million received from Bank of Baroda last year since its inception, according to data from Tracxn. The company counts Hyundai Motor Co, Tiger Global and Matrix Partners India and Ratan Tata among its investors.

Established in 2017 to operate electric taxis, Ola Electric branched out into the manufacture of electric vehicles after the pandemic crippled the company’s ridesharing activity. In February, the company launched the Ola Futurefactory, billed as the world’s largest electric two-wheeler factory, near Krishnagiri in Tamil Nadu. Ola is also entering the used car sector, even though its taxi vertical is showing signs of recovery.

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Scooter sales

The fundraising announcement comes two weeks after Ola sold electric scooters worth Rs 1,100 crore in the two days the buying window was open.

Ola restarted sales and reservations for its electric scooters – S1 and S1 Pro – on the Ola app only on September 15, after the shopping-designed website encountered technical difficulties the week before. Sales peaked at four units per second on September 16, Aggarwal tweeted.

“In total over two days, we achieved over Rs 1,100 crore in sales! This is unprecedented not only in the automotive industry, but it is one of the highest sales in a day (in value ) for a single product in Indian e-commerce history, ”Aggarwal said in a blog post. “We truly live in a digital India.”

The purchase window is now closed, but scooters can still be reserved on the Ola Electric website. The sale will resume on November 1.

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Scooters

The Ola electric scooter is inferior to competing offerings from Ather Energy, Bajaj Auto and TVS Motors in terms of price, but still promises greater range and higher performance.

Launched at a starting price of Rs 99,999, including FAME II subsidies but excluding state-level tax breaks, Ola electric scooters come in two variants:

  • The cheaper Ola S1, which gets a 2.98 kWh battery that’s good enough to cover 121 km on a single charge. Top speed is limited to 90 km / h.
  • The more expensive Ola S1 Pro, which gets a 3.97 kWh battery with a range of 181 km. It has a top speed of 115 km / h.

Ola will also roll out a home service network in every city where it sells its electric vehicles and said buyers can expect a 40% lower total cost of ownership for its electric vehicles compared to gasoline scooters on the market. market today.

The scooters also include features like keyless lock / unlock, different modes and profiles for different riders, and even allow riders to set moods that will change the sound and display graphics. Both models will also benefit from reverse mode and hill-hold assistance.

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“Only around 160 million people in India own a two-wheeler today and that will increase dramatically,” Aggarwal said at the launch event on August 15. gasoline vehicles. The only way out is to accelerate this electric journey, and that is the vision with which we launched Ola Electric.

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