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Photo credit: MANJUNATH KIRAN/AFP/Getty Images
India's Ola Electric is looking to raise $661.8 million in an initial public offering, the Bengaluru-headquartered startup said Friday in draft papers filed with the country's markets regulator.
The IPO paperwork follows Ola Electric raising $384 million in a debt-heavy funding round in late October from Temasek and Indian government-backed lender State Bank of India. The startup, which has raised nearly $1 billion over the years, was valued at $5.4 billion in October funding, TechCrunch previously reported.
According to the draft prospectus, the startup also plans to sell around 95.2 million shares, including some from founder Bhavish Aggarwal (pictured above), Alpha Wave Ventures, Tiger Global, Matrix Partners and SoftBank. According to the prospectus, Kotak, Citi, Bank of America, Goldman Sachs, Axis, ICICI, SBI and BOB Capital are responsible for the IPO.
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“/>Involvement of Ola Electric. (Image: Ola Electric DRHP)
Ola Electric, which has launched several new, cheaper variants of its flagship electric scooter model S1 as well as an improved version this year, is leading the electric scooter market with a market share of more than 35%, according to industry data. The IPO is the first by a two-wheeler manufacturer in the country in over 15 years.
Under Aggarwal's leadership, Ola Electric emerged from ride-hailing giant Ola in 2019. The two companies continue to share a number of resources and some Ola investors had asked Aggarwal to set up a holding company for both companies and provide them with allocations from the parent company.
According to the document, losses in the 2023 fiscal year amounted to $176 million. The startup listed several risk factors in its report, including the risk that the government will no longer provide incentives to local electric vehicle manufacturers, as well as the possibility that there could be many major management changes. “Our employee attrition rate was 42.06% and 47.48% for the seven-month period ended October 31, 2023 (annualized basis) and FY2023, respectively,” Ola Electric said.
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