Ola Electric raises INR 3,200 crores to scale up EV business and build gigafactory for cell manufacturing – EQ

In Short : Ola Electric, the electric vehicle (EV) arm of ride-hailing company Ola, has successfully raised INR 3,200 crores (approximately $430 million) to accelerate its EV business and establish a gigafactory for cell manufacturing. This funding round, led by Falcon Edge, SoftBank, and several other investors, underscores the growing investor confidence in the electric mobility sector in India. The funds will be instrumental in furthering Ola Electric’s mission to promote sustainable transportation solutions and contribute to the country’s green energy initiatives. The gigafactory will play a pivotal role in enhancing domestic battery production capacities, fostering EV adoption, and reducing the carbon footprint in the transportation sector.

In Detail : These funds will be allocated to the expansion of Ola’s EV business and the establishment of India’s inaugural lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.

• Ola Electric has successfully secured approximately Rs 3,200 crore in funding
• Ola Electric has plans to expedite its growth
• The company is in the process of establishing a lithium-ion cell manufacturing facility

Ola Electric has successfully secured Rs 3,200 crore in funding from prominent investors led by Temasek and through project debt from the State Bank of India. These funds will be allocated to the expansion of Ola’s EV business and the establishment of India’s inaugural lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.

Ola Electric has plans to expedite its growth. This includes increasing its 2-wheeler manufacturing capacity, introducing electric motorcycles, and fast-tracking the construction of a gigafactory. Furthermore, Ola Electric was chosen as the sole Indian EV company to benefit from the government’s cell PLI scheme, entitling it to a maximum capacity of 20 GWh (gigawatt hours). This scheme is pivotal in making India self-sufficient in key aspects of the EV value chain.

The company is in the process of establishing a lithium-ion cell manufacturing facility

The company is in the process of establishing a lithium-ion cell manufacturing facility near Ola’s Futurefactory in Krishnagiri, Tamil Nadu. This facility, unique in India, will initially have a capacity of 5 GWh in its first phase, with plans for further expansion to reach 100 GWh at full capacity. Anticipated to commence operations early next year, the upcoming Gigafactory in Krishnagiri will enable the local production of cells on a large scale, bringing India a step closer to energy independence.

Ola Electric’s scooter portfolio currently includes five models

Recently, Ola Electric expanded its scooter portfolio to five products with prices ranging from INR 90,000 to 1.47 lakh. These models, namely S1 Pro, S1 Air, S1X+, S1X (3kWh), and S1X (2kWh), are based on a new and advanced Gen-2 platform and were unveiled during Ola’s annual flagship event last month.

Additionally, Ola Electric previously introduced a lineup of motorcycle concepts scheduled for launch by the end of next year. These models, including Diamondhead, Adventure, Roadster, and Cruiser, have been tailored to cater to a variety of consumer preferences.