According to two sources, Ola Electric is in advanced discussions to raise more than $500 million in a new financing round. This is as the Indian company seeks to expand its electric vehicle manufacturing operations in South Asia.
Falcon Edge Capital is in advanced discussions to lead the round. Ola Electric is valued between $2.5 billion and $3 billion, up from $1 billion in its previous raise in 2019, sources told TechCrunch. They requested anonymity because it is confidential. According to people, Temasek in Singapore is also having conversations.
These talks are taking place at a time that Ola Electric, the original parent company of ride-hailing giant Ola Electric is looking to file an initial public offering. According to a third source, the firm has already signed up a few banks and plans to file for an initial public offering (IPO) later in the year.
According to the person, the firm wants to raise $1 billion. However, the person cautioned that this is still an open question. Indian media reported the IPO talks first.
Ola Electric's first electric scooter, Ola S1, was launched earlier this month. It is priced at 99.999 Indian rupees or $1,350. On a full charge, the electric scooter can travel 121 km (75 miles).
Ola is currently the best product on the market with features that are significantly superior to those of its peers. Despite all their resources, incumbents have launched products that look like another ICE product but lack the punch. In a report to clients earlier this month, Bernstein analysts wrote that we have been disappointed in TVS and Bajaj on this front.
Although startups like Ather have invested significant effort in the product, high pricing and slow manufacturing scale-up were key factors in the low sales. Ola's key differentiators are its software-based features, range, peak speeds and acceleration (fastest electric scooter currently), boot space and colour options.
Ola / Ola Electric did not immediately respond to a request.
