Ola Electric Secures ₹ 3,200 Crore Funding To Fuel EV Expansion

In a significant development for the Indian electric vehicle (EV) industry, Ola Electric announced the successful closure of an ₹ 3,200-crore funding round. This financing round comprises equity investments from prominent investors led by Temasek and project debt provided by the State Bank of India. The funds procured will play a pivotal role in advancing Ola's EV business and establishing India's very first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. This includes improving its 2-wheeler manufacturing capacity, introducing electric motorcycles, and fast-tracking the development of a Gigafactory.

Commenting about the investment, Bhavish Aggarwal, Founder & CEO of Ola Electric, said, "At Ola, our vision is to end the ICE age in automobiles, and our forthcoming Gigafactory will be a giant leap in India's journey towards becoming a global EV hub. We are dedicated to developing essential EV technologies and rapidly scaling up manufacturing to accelerate the shift towards sustainable mobility. We extend our heartfelt gratitude to our investors and lenders for their unwavering support."

Ola Electric is the sole Indian EV company under the government's cell PLI (Production Linked Incentive) scheme, with a maximum capacity allocation of 20 GWh. This PLI initiative will be instrumental in fostering self-reliance and localising critical elements of the EV value chain. Ola is currently building a lithium-ion cell manufacturing facility adjacent to Ola's Future factory in Krishnagiri, Tamil Nadu. In its initial phase, this facility will have a capacity of 5 GWh, which will be progressively expanded to reach a maximum capacity of 100 GWh.

2023 has been all about expanding Ola’s electric scooter portfolio with prices ranging from ₹ 89,999 to ₹ 1,47,499. These offerings, including the S1 Pro, S1 Air, S1X+, S1X (3kWh), and SIX (2kWh), are built on a new Gen-2 platform.

Furthermore, Ola Electric is set to venture into the electric motorcycle space and has plans to introduce a range of motorcycles by the end of the next year. These include models like Diamondhead, Adventure, Roadster, and Cruiser, concepts of which were showcased earlier this year.