IPO-Bound Ola Electric’s Revenue Cross ₹ 5,000 Crores, Losses Increase

Ola Electric has been making a lot of buzz since it revealed that it will be going public in 2024. In fact, the largest electric two-wheeler brand with respect to sales has a special announcement about its upcoming IPO tomorrow in Mumbai. According to reports, the IPO issue for the public will commence from August 2 to August 6 and the company might be listed on the stock exchange on August 9. Ola Electric released a Red Herring Prospectus (RHP) in which it was revealed that the company’s revenue rose by a massive 90% as it clocked ₹5,009 crores in revenue. 

(Also Read: Ola Electric Bike Launch Likely On August 15)

The incredible hike in the brand's revenue is courtesy the fact that sales of the Ola S1 scooters have surged a lot. Ola Electric registrations crossed the 2 lakh milestone in June 2024, thereby the brand becoming the first electric two-wheeler manufacturer to achieve this sales milestone within the first half of a calendar year. Based on June 2024 sales figures, Ola Electric currently holds a 46% market share signifying its domination. 

However, despite the noticeable jump in revenues, losses for the company have also increased by 8%. Ola Electric recorded a loss of ₹1,584 crores, in FY23 losses stood at ₹1,472 crores. The company claimed that it will continue to incur operating losses as it’s expanding the business further, which will require more capital investment in the near future. One of the avenues of expansion is exports as Ola Electric wants to establish its presence in international markets. 

Ola Electric plans to invest ₹1,600 crores in R&D from the revenue generated via the IPO. According to recent reports, Ola Electric has shelved its electric car project as it focuses its attention on two-wheelers. The company is looking at raising around ₹5,500 crores at a valuation between $4.2 billion to $4.4 billion (₹35,162 to ₹36,863 crores).