Ola Electric Hits $6 Billion Valuation Milestone with Successful Funding Round

Ola Electric, a manufacturer of electric scooters, has achieved a successful funding round, raising $300 million, according to the reports on May 23. This latest investment is projected to increase Ola Electric’s valuation to $6 billion.

The company intends to utilize the funds to substantially enhance its annual production capacity of electric two-wheelers from 0.5 million to 2 million units. As per the report, these funds will also support the establishment of an advanced cell chemistry battery plant, for which the company is already eligible for incentives under the production-linked incentive scheme.

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Reportedly, a prominent sovereign fund company and SoftBank Group, an early major investor in the company, did not participate in the latest funding round, which was led by another leading sovereign fund company. This new round of fundraising occurs at a time when there are anticipations of Ola Electric reaching a point of profitability and achieving a break-even situation in the near future.

The manufacturer of electric two-wheelers has consistently achieved a monthly production rate exceeding 20,000 units. As part of its growth strategy, the company aims to establish 500 Experience Centres in major cities by April 2023.

Furthermore, Ola Electric CEO Bhavish Aggarwal recently shared his excitement about the Ola S1 Air electric scooter on Twitter. He mentioned test driving the vehicles and expressed his satisfaction with them. Furthermore, he announced that deliveries of the Ola S1 Air will commence in July. The Ola S1 Air is the company’s most affordable e-scooter, launched in India last year, with three different variants available and a starting price of ₹84,999 for the base model.

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The Ola S1 Air electric scooter is available in multiple variants with different price points. The base model is priced at ₹84,999, while the mid variant costs ₹99,999, and the top variant is priced at ₹1,09,000 (all prices are ex-showroom). It features the company’s latest MoveOS 3 and offers a range of 76km. The scooter comes in various color options such as Coral Glam, Jet Black, Liquid Silver, Neo Mint, and Porcelain White. It is powered by a 2.5KWh lithium-ion battery that takes approximately 4.5 hours to fully charge. Ola claims that the S1 Air can accelerate from 0 to 40km in 4.3 seconds and has a top speed of 85kmph. It offers three modes – Eco, Sport, and Reverse – and has an IDC range of 100 km in Eco mode.

The weight of the Ola S1 Air scooter is 99kg, making it lighter than other scooters with similar price tags that have internal combustion engines (ICE). The scooter is equipped with drum brakes at the front and rear disc brakes, as stated by Ola.