Ola Electric in talks to raise at over $2.75B valuation

Ola Electric is in advanced talks to raise between $250 million to $500 million in a new financing round. This comes when the Indian firm looks to scale its electric vehicle manufacturing business in the South Asian market.

Details about the Ola Electric investment

Falcon Edge Capital is in advanced talks to lead the round. This values Ola Electric between $2.75 billion to $3.5 billion (up from $1 billion in its previous fundraise in 2019).

The talks come at a time when Ola, the initial parent firm of Ola Electric is looking to file for an IPO. The firm, which recently raised $500 million, has signed up a few bankers. It is looking to file for the IPO later this year, according to a third person familiar with the matter.

Terms of the deal are not final yet so they may change, sources cautioned.

It was reported that the firm is looking to raise as much as $1 billion, cautioning that the matter is not yet final. Indian media first wrote about the IPO talks.

ola electric Ola Electric in talks to raise at over $2.75B valuation

Ola’s Electric scooter

Earlier this month, Ola Electric launched its first electric scooter, called Ola S1. It is priced at 99,999 Indian rupees, or $1,350. The electric scooter offers a range of 121 kilometers (75 miles) on a complete charge.

“Ola is the best product in the market currently with features significantly better than peers. Incumbents have launched products that appear as another variant of an ICE product and lack the punch. We have been specifically disappointed with both Bajaj and TVS on this front,” analysts at Bernstein wrote to clients in a report earlier this month.

“While startups such as Ather have made significant efforts on the product. The steep pricing, significantly slower pace of manufacturing scale-up, restricted launch in only a few cities earlier were the key drivers for weak sales. The crucial differentiators for Ola are the software-based features, range, peak speeds, and acceleration (fastest EV scooter now), boot space, and colour options.”

Photo of Alex


Alex is a seasoned editor and writer with a deep passion for technology and startups. With a background in journalism, content creation, and business development, Alex brings a wealth of experience and a unique perspective to the ever-changing world of innovation. As the lead editor at Startup World, Alex is committed to discovering the hidden gems in the startup ecosystem and sharing these exciting stories with a growing community of enthusiasts, entrepreneurs, and investors. Always eager to learn and stay updated on the latest trends, Alex frequently attends industry events and engages with thought leaders to ensure Startup World remains at the forefront of startup news and insights. Alex's dedication and expertise help create an engaging platform that fosters knowledge-sharing, inspiration, and collaboration among tech-savvy readers worldwide.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button