February 14, 2024
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Ola Electric, led by founder Bhavish Aggarwal, created a historic milestone in the Indian financial landscape by submitting draft papers for its IPO on December 22, 2023. As the first electric vehicle company in the country to take this significant step, Ola Electric IPO, Ola Electric capitalized on the global momentum in the electric vehicle sector, solidifying its position as a leading force in India’s sustainable mobility landscape. With an estimated valuation of $5.4 billion in 2023 and the support of notable investors, Ola Electric’s IPO has garnered substantial interest, highlighting the industry’s growing prominence and the company’s pivotal role in shaping the future of mobility in India. 

Before delving into the IPO details, let’s briefly revisit the historical factors that propelled Ola Electric to be the inaugural electric company to file for an IPO:

In the dynamic landscape of the Indian Electric Vehicle (EV) sector, Ola Electric has undergone a remarkable transformation, transitioning from a cab aggregator to a leading EV manufacturer. Their journey is marked by strategic initiatives aimed at establishing themselves as a formidable force in the industry.

Strategic Acquisitions:

Etergo Acquisition (2020):

Ola Electric strategically expanded its technological portfolio by acquiring Etergo, gaining access to crucial electric vehicle technology, including the innovative swappable battery technology. This move positioned Ola Electric as a technology-driven player in the evolving electric mobility market. 

In 2020, Ola Electric successfully acquired Etergo Bv, a company based in Amsterdam. Established in 2014, Etergo specialized in the development of an advanced all-electric scooter called the ‘AppScooter,’ initially unveiled in 2018. The AppScooter distinguishes itself by utilizing high-energy-density batteries that are swappable, providing an impressive range of up to 240 kilometers. Etergo BV has worked with leading automotive companies including Tesla, Ferrari, Jaguar, BMW, and General Motors. 

Key Partnerships and Manufacturing Facility:

Siemens Partnership and Tamil Nadu Facility: 

Ola Electric IPO forged a crucial partnership with Siemens to create a state-of-the-art electric vehicle manufacturing facility in Tamil Nadu. With an annual production capacity of two million electric vehicles, this facility solidifies Ola Electric’s standing as an industry leader and contributes significantly to regional job creation.

Built on Industry 4.0 principles, the factory became the most advanced manufacturing facility in the country. Approximately 5,000 robots were deployed across various functions. As part of the partnership, Ola had access to Siemens’ integrated Digital Twin design and manufacturing solutions to digitalize and validate products and production ahead of actual operations.

Operational Framework:

Ola Electric’s operational framework is built upon three key scalable platforms. First, the Research and Development (R&D) and technology platform exhibit in-house design and development capabilities across various Electric Vehicle (EV) technologies and components. The second platform is a versatile manufacturing and supply chain system, while the third encompasses a Direct-to-Consumer (D2C) omnichannel distribution platform. This distribution network comprises 935 experience centers throughout India, including 414 service centers.


In August 2021, Ola Electric introduced its maiden EV model, the S1 Pro, expanding its portfolio to encompass five EV scooter models with varying price ranges. Presently, the company’s electric scooter lineup includes three models – Ola S1 Pro, Ola S1 Air, and Ola S1X, along with the X+ variant. Notably, the S1X variant offers flexibility with two battery pack options, allowing customers to choose between 2kWh and 3kWh configurations. A testament to its rapid success, Ola Electric, within just nine months of launching its first EV scooter, emerged as the best-selling Electric Two-Wheeler (E2W) player in India. Furthermore, Ola Electric operates a Battery Innovation Center (BIC) in Bengaluru, India which is focused on advancing cell and battery technology and refining manufacturing processes. This center plays a pivotal role in preparing for the forthcoming cell manufacturing activities at the Ola Gigafactory.

Financial Soar:

Ola Electric’s financial trajectory has been remarkable, with revenues skyrocketing from 456 CR rupees in FY22 to an impressive 2,782 CR in FY23. Fueled by a series of successful funding rounds totaling $1.5 B, the company has positioned itself as a key player in the electric vehicle space, backed by plans to establish the world’s largest future factory. In the financial year 2023, Ola Electric’s expenses amounted to 3383 crore rupees, witnessing a substantial increase from the 1240 crore rupees incurred in the fiscal year 2022. Correspondingly, the profit and loss (PNL) statement for FY23 revealed a profit of 1472 crore rupees, compared to the previous fiscal year’s figure of 784 crore rupees in FY22

 Ola Electric’s current worth of $5.4 billion, based on its October financing, underscores its substantial financial backing. In the first three months of FY24, the company’s revenue touched to Rs 1242.74 crore.

Talking about the sales in 2023, Ola Electric secured the top position in electric vehicle sales, maintaining a market lead.

The company achieved an impressive sales figure of 2,65,995 units, exhibiting significant growth compared to the 1,09,382 units sold in 2022. With a remarkable year-on-year growth of 413%, Ola Electric has made substantial strides in the electric vehicle sector, claiming a notable market share of 31% in 2023 and solidifying its position as a key player in sustainable transportation.

Now, it is time to shift the attention to the main topic which is  OLA ELECTRIC IPO: 

Ola Electric’s highly anticipated Initial Public Offering (IPO) has garnered substantial attention in the market. The total size of the IPO stands at Rs 7,000 crore, with a significant portion coming from a fresh issue of Rs 5,500 crore and a pre-IPO placement of Rs 1,100 crore. The IPO, approximately priced at Rs 140-150 per share, aims to raise funds in the range of Rs 5,838 crore, valuing the company between Rs 56,921 crore and Rs 58,954 crore (approximately $6.80 billion to $7.08 billion).

Notably, Ola Electric’s IPO includes an Offer for Sale (OFS) of 9.51 crore shares, led by Bhavish Aggarwal, within the price range of Rs 1,330 to Rs 1,430 per share. The entire IPO, including the pre-IPO portion, can represents 11.85% of the company. Ola’s ambitious plans for the future are highlighted by its Gigafactory, which is set to benefit from the Production-Linked Incentive (PLI) scheme for a massive 20 gigawatts. The company aims to produce an impressive three lakh units of sales in the fiscal year 2025, showcasing its commitment to expanding its footprint in the electric vehicle market. Bhavish Aggarwal, the founder of Ola Electric, plans to sell approximately 47.4 million shares in the SoftBank Group-backed e-scooter maker, as the company aims for a valuation between $7 billion and $8 billion by early 2024

The IPO funds will be utilized as outlined in the DRHP:

 ₹ 12,264.27 million crore for Ola Cell Technologies’ Gigafactory project

The expansion plan for the Ola Gigafactory is organized into several phases:

Phase 1(a): By March 2024, there is an expectation to achieve a capacity of 1.4 GWh.
Phase 1(b): The goal for October 2024 is to further increase the capacity to 5 GWh.
Phase 2: In April 2025, the plan is to continue the growth trajectory, raising the capacity to 6.4 GWh.
Further Phases: Looking ahead, subsequent expansion phases are outlined, with a target capacity of 20 GWh anticipated to be reached in the second quarter of the calendar year 2026.

₹1,600 crore for research and development (R&D)
₹350 crore for organic growth initiatives and general corporate purposes
₹800 crore to repay/pre-pay debts of Ola Electric Technologies (OET) 

In the Ola Electric IPO,  some key investors and their respective stakes include SoftBank’s SVF II Ostrich fund with a 21.98% stake (81.04 Cr shares), Tiger Global’s Internet Fund III holding a 6.03% stake (22.24 Cr shares), and promoter group entities ANI Technologies and Indus Trust with 4.35% and 3.85% stakes, respectively. Other significant institutional investors comprise Alpha Wave Ventures with a 3.49% stake, and Matrix Partners India, which owns a 3.51% stake through its two funds. 


According to the filed Draft Red Herring Prospectus (DRHP), Ola Electric aims to raise Rs 5,500 crore through a fresh issue of shares. The company’s latest financial report reveals a total debt of Rs 1,617 crore in FY24. The primary objective of the IPO is to utilize the proceeds to significantly reduce existing debts and repay loans owed by subsidiaries to banks. Additionally, a portion of the funds will be allocated for capital expenditure and various other purposes outlined in the prospectus. 


Before delving into the challenges specific to OLA Electric’s Initial Public Offering (IPO), it is crucial for potential investors to recognize the inherent uncertainties that accompany any investment in a company. Understanding and evaluating the risk factors associated with an IPO is a fundamental aspect of making informed investment decisions.

The following points outline key challenges that OLA Electric faces, which prospective investors should carefully consider in their assessment of the company’s investment viability:

Ongoing Financial Performance: OLA Electric has a limited operating history and has faced losses and negative cash flows. Investors should monitor the company’s ability to achieve sustained financial stability and positive cash flows.
Supply Chain Vulnerabilities: The company may encounter defects, quality issues, or disruptions in the supply chain, impacting product pricing and manufacturing timelines. Investors should assess the robustness of OLA Electric’s supply chain management.
Product Quality and Reputation: Defects in OLA Electric’s EVs or failure to meet industry standards could harm the brand’s reputation and lead to product recalls or legal actions. Investors should consider the company’s commitment to maintaining high-quality products.
In-House Manufacturing Risks: Risks associated with in-house cell manufacturing capabilities at the Ola Gigafactory could impact production efficiency. Investors should monitor the company’s efforts to address potential challenges in its manufacturing processes.
Government Incentives: Reductions or eliminations of government incentives, such as subsidies and tax concessions, may affect OLA Electric’s pricing and market competitiveness. Investors should stay informed about the regulatory environment and potential changes to government support.
Inventory Management: Accuracy in estimating supply and demand for EVs is critical to prevent inventory shortages or excess. Investors should evaluate OLA Electric’s forecasting and inventory management capabilities.
New Model Development: OLA Electric’s ability to develop, manufacture, and deliver new EV models on schedule is vital for staying competitive. Investors should assess the company’s innovation and product development capabilities.
Competitive Landscape: The highly competitive nature of the automotive market poses a challenge. Investors should analyze OLA Electric’s strategies for differentiating itself and maintaining a competitive edge.
Expansion Challenges: Delays, disruptions, or cost overruns in the expansion of the Ola Futurefactory may impact production capacity. Investors should monitor the progress of the expansion plans.
Customer Acquisition and Retention: OLA Electric’s ability to attract and retain customers is pivotal for sustained growth. Investors should assess the effectiveness of the company’s marketing and customer retention strategies.


In light of the insights from the Redseer Report, Electric Two-Wheelers (E2Ws) stand as pioneers in India’s transition towards electric mobility, driven by their favorable total cost of ownership and the supportive policies of the Indian government, including production-linked incentives and subsidies to boost domestic manufacturing and electric vehicle (EV) adoption. The report forecasts a substantial growth in E2W penetration within India, projecting an increase from approximately 4.5% of domestic 2W registrations in Fiscal 2023 to a significant 41-56% of domestic 2W sales volume by Fiscal 2028. Simultaneously, the Indian E2W industry is expected to witness a commendable Compound Annual Growth Rate (CAGR) of 11%, surging from US$35 billion (₹28.8 trillion) to US$45 billion (₹36.6 trillion) by Fiscal 2028.

Beyond the borders of India, promising export opportunities emerge for Indian E2W Original Equipment Manufacturers (OEMs) in regions such as Africa, Latin America (LATAM), and Southeast Asia (SE Asia). This global expansion holds substantial potential for Ola, positioning the company to tap into the burgeoning demand for electric mobility solutions. By aligning with the projected growth trends in international markets, Ola can strategically capitalize on the rising global awareness and acceptance of electric vehicles. 


The Ola Electric IPO stands as a promising entry into India’s evolving EV market, offering investors transparent insights through the DRHP. The strategic use of IPO funds for debt repayment and R&D underscores Ola Electric’s commitment to sustainability. As the EV sector gains traction, Ola Electric’s IPO becomes a significant milestone for a cleaner transport ecosystem. Potential investors should scrutinize details and risks.  Ola has not disclosed the IPO price, size, or launch date, urging a cautious investment approach. 

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