Ola Electric, the prominent electric vehicle maker in India, has recently raised Rs 100 crore in debt funding from Alteria Capital, gearing up for its upcoming IPO. This marks the second round of debt financing for the Bengaluru-based company in 2024. The company’s board has approved the issuance of 10,000 non-convertible debentures at an issue price of Rs 1,00,00 each, resulting in the raising of Rs 100 crore. The regulatory filings accessed from the Registrar of Companies (RoC) reveal that the debentures carry an interest rate of 13.8% per annum, with an additional 2% interest per month in case of default. This development comes shortly after Ola Electric secured $50 million in debt funding from EvolutionX.
The startup data intelligence platform, TheKredible, reports that Ola Electric has accumulated over $1 billion in funding across equity and debt rounds, with a valuation of $5.4 billion during its last funding round. The company had filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) back in December 2023, aiming to raise Rs 5,500 crore through an IPO. Recent reports indicate that SEBI has given its approval for Ola Electric’s public listing. Notably, the DRHP filing reveals the current stakeholding structure, with Bhavish Aggarwal holding the largest stake at 36.94%, followed by Soft Bank at 21.98%.
In the financial year ending March 2023, Ola Electric witnessed significant growth, with revenues skyrocketing to Rs 2,631 crore, a seven-fold increase from the previous year. However, the company also reported an 87.76% rise in losses, reaching Rs 1,472 crore. The two-wheeler EV market in India sees Ola Electric in competition with major players like Hero Electric, Ather Energy, and TVS. Data from Vahan indicates that Ola Electric currently holds a 49% market share in the two-wheeler EV segment, with 37,191 e-scooters registered in May.
As the company continues to expand and strengthen its position in the market, the recent debt raise of Rs 100 crore from Alteria Capital signifies its commitment to gearing up for the highly anticipated IPO. Stay tuned for more updates on Ola Electric’s strategic developments, financial growth, and market performance.
