The company is on track to launch its motorcycle in mid-2023 and plans to launch the electric car in 2024.
After the planned IPO plan in December 2021 was canceled citing uncertainties, Bhavish Aggarwal, founder of ANI Technologies, has put the IPO plan back on the table. The maker of the S1 electric scooter plans to list its company on stock exchanges in 2024, apart from expanding its corporate offering beyond scooters to include motorcycles and cars, Aggarwal said at the ABP Network’s Ideas of India Summit on Saturday.
In a fireside chat with Chetan Bhagat, a renowned author, Aggarwal said that unlike Tesla, which is unattainable for many Indians, his car and motorcycle will cause disruption and help young India master the EV revolution.
“The motorcycle project is on course and will be realized by mid-2023, the ‘IPO and the car are coming early next year’,
Japanese conglomerate SoftBank has invested nearly $250 million and owns a 24% stake in Ola Electric. Ola has raised $3.95 billion in 26 rounds to date, with her most recent funding round on February 22, 2022 for $20 million.
The EV maker last raised Rs 150 crore as its Series J round of Axis Growth Avenues AIF and Arrow Multi-Asset Fund in February 2022. The same was used to boost manufacturing at his ‘Factory of the Future’ in Krishnagiri, Tamil Nadu.
Enough wealth created for investors
Aggarwal shared the fundraising plans to date and the potential IPO, which will allow investors to capitalize on the £5bn valuation drive invested in my organization.”
Aggarwal assured investors remain believing in his plans,” and he is aware of the odd Rs 42,000 crores riding one of India’s early unicorns.
When sounded out by Chetan Bhagat that he was sleeping well, Aggarwal remarked
“I am a baniya (merchant) at heart and my mission was clear to me: to do something of my own that has an impact on India. “I am fully aware that what I carry on my shoulders is significant,” he added.
Aim for 8x productivity growth
Ola is now the market leader in ride-hailing and electric two-wheelers.
“We will continue to lead the way and drive the future for a young, entrepreneurial India. It is powered by artificial intelligence that will accelerate the rate of productivity by at least eightfold to put India at the forefront of the global mobility revolution.”
Obtaining significant leadership in controlling lithium reserves is also a top priority for Ola, he noted
India, which recently found 5.9 million tonnes of lithium at J&K, is forced to rely on global supply chains to import lithium for its battery manufacture
Desires are fueled by dreams
The Ola founder is confident that India can become a leader in electric vehicles by developing core technologies such as cells and batteries
“Nothing prevents India from becoming a global knowledge hub for artificial intelligence, semiconductors, electric vehicles and energy storage solutions. For entrepreneurs like me, our aspirations are not constrained by limitations, but driven by our dreams,” said Aggarwal.
Ola Electric is preparing a plan in cooperation with external stakeholders, particularly with government support, to ensure a stable supply of raw materials, particularly lithium, to go into manufacturing a battery cell, he said.
Ola recently finalized a US$920 million MoU with the Tamil Nadu government to manufacture lithium-ion cells, which will give the company strong control over one of the critical components used to manufacture the battery.
The EV maker, which has eyed the FHA deal with Australia for formation, is also exploring options for a pact to supply battery-grade lithium with a government-sponsored organization.
Aggarwal, who believes India can become fully electric by 2025, is excited about the activities of the old players in the EV space, he says: “The traditional car and two-wheeler manufacturers have suddenly become more aggressive when it comes to their EV launches to accelerate, especially in the car space for electric vehicles, which is “good for India”.
Ola, which built its $330 million two-wheeler plant with a capacity of two million electric scooters, plans to have a total capacity of 10 million scooters over the next two years. Aggarwal is looking beyond India and aims to enter the European and Latin American markets in the coming years.
“The future is to build in India for the world, using existing technology and other technologies that will leapfrog India into the global mobility space and propel it to the number one position,” he added
Welcoming the Indian government’s move to seed the critical growth drivers for the clean energy transition, including green hydrogen and building sustainable cities, the Ola founder said: “This is a step in the right direction to prepare the country for the… bring global map.”
Bhagat nudged Aggarwal and asked if he lives and sleeps in the factory just like Elon Musk. Aggarwal admitted that he sometimes lived at the factory and rarely went home as the robots refused to work.
He said the auto business is the toughest and the cornerstone of an industrial society. “India depends on the automotive industry. The last 12-18 months have been very challenging,” said Aggarwal.
Highlighting the cultural issues surrounding the company, he explained that Ola is not a “9-to-5 job” and is not intended for those seeking a work-life balance.
“As if you are creating a new revolution, the hunger and passion takes over the desire to bring the impossible to life,” he explained.
Ola, which built its factory in record time in nine months, had resorted to a series of layoffs, most recently in January 2023, where around 200 employees were ordered to leave.
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