Ola Electric, the electric vehicle (EV) maker, reported an operating loss of $136 million on a revenue of $335 million in FY23, according to sources cited by Reuters. Despite facing challenges such as incentives cuts and changes in the FAME II scheme, the company remains optimistic about achieving operational profitability this year. Ola Electric has set ambitious internal projections, aiming to reach a revenue of $1.5 billion in the fiscal year 2023-24, four times the current figure.
The Indian government introduced the FAME II subsidy to boost the country’s nascent EV sector, but recent reductions in subsidies resulted in a significant decline of 57% in electric two-wheeler sales in June 2023 compared to the previous month. Despite this setback, Ola Electric is confident in its future growth prospects.
In addition to its operational updates, Ola Electric is progressing with its IPO plans and has initiated discussions with investment bankers, including Goldman Sachs, Kotak, Citi, and Axis. The company aims to raise $1 billion in net proceeds at a valuation of $10 billion. The IPO is expected to be launched in the final quarter of the current fiscal year, with the draft red herring prospectus (DRHP) set to be filed by the end of the next quarter.
The IPO proceeds will be utilized to expand operations, establish a battery manufacturing plant, and increase scooter production. Major shareholders of Ola Electric, such as Temasek, Softbank, Tiger Global Management, Edelweiss, Matrix Partners India, Kia Motors, and Alpha Wave Investors, may also consider offloading some of their stakes in the company during the IPO.
Ola Electric has been making significant strides in the EV market, surpassing Rs 500 crore in revenue in its first two months of FY23. The company’s ambitious growth targets and promising future forecast reflect its determination to make a mark in the fast-evolving electric mobility sector in India.
