Electric car maker Ola Electric is close to raising about $300 million for its expansion plans and to meet other corporate needs, sources close to the company said. The new funding round comes amid expectations that Ola Electric will soon break even and become profitable.
The fundraising will be managed by investment bank Goldman Sachs, with funds raised from existing large global investors and sovereign funds, the sources added.
With an annual revenue run rate of close to $1 billion, Ola Electric leads the Indian EV maker in volume and revenue within a year of starting deliveries of its electric scooters Ola S1 and Ola S1 Pro.
Also read: Ola Electric replaces the front forks of S1 Pro and S1 electric scooters
The company has been laying out plans to develop core technologies such as battery manufacturing and hopes to expand its product portfolio to two- and four-wheelers.
Ola Electric recently signed a memorandum of understanding with the Tamil Nadu government to acquire land to build the world’s largest electric vehicle center at a site in Krishnagiri, which will include the company’s battery factory, four-wheel car factory and supplier ecosystem. The company also intends to expand its existing two-wheeler factory, the sources said.
The electric two-wheeler maker has an average monthly production rate of more than 20,000 vehicles. Its expansion plans include opening 500 experience centers in all major cities by April 2023.
First published date: Mar 22, 2023 at 08:32 AM CST