Ola Electric Sets Sights on IPO by 2023-End, Enlists Goldman and Kotak
Ola Electric's IPO Offers Investors a Ticket to India's Electric Revolution
26 May 2023
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Kunal Tyagi
Ola Electric, backed by Softbank and Tiger Global, plans to list on stock exchanges by the end of 2023 and has appointed Goldman Sachs and Kotak to manage its IPO.
The company aims to raise capital in the IPO, seeking a valuation higher than its previous valuation of $5 billion.
Ola Electric holds a dominant position in the EV scooter market and sold a record-breaking 30,000 scooters in April, solidifying its market leadership.
Ola Electric, the EV two-wheeler maker backed by Softbank and Tiger Global, is gearing up to list on stock exchanges by the end of 2023. The company has appointed investment bank Goldman Sachs and domestic bank Kotak to manage its initial public offering (IPO). With its last valuation at $5 billion in 2022, Ola Electric aims to raise significant capital in the IPO, seeking a valuation higher than $5 billion. This move comes as the company strives to capture India's promising electric vehicle market, where it holds a dominant position in the EV scooter space.
Ola Electric has demonstrated its market leadership by selling a record-breaking 30,000 scooters in April, further solidifying its position as the leading player in the EV scooter segment. The company's IPO, if it sells the minimum required 10% stake at the expected valuation, has the potential to become India's largest IPO this year. Despite challenging market conditions, Ola Electric aims to file its draft documents, market to investors, and list by the end of the year, driven by the CEO's determination to adhere to this ambitious timeline.
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The urgency to go public is fueled by Ola Electric's desire to leverage government subsidies for electric vehicles before they are discontinued. By entering IPO discussions within a six-month timeframe, Ola Electric stands out among venture capital-backed companies seeking to tap into the stock market. Founded by Bhavish Aggarwal, who also established the ride-hailing firm, Ola, the company faces competition from global players like Uber. However, with its robust sales figures and aggressive growth plans, Ola Electric aims to establish itself as a key player in India's nascent but promising electric vehicle industry.
Ola Electric's growth strategy extends beyond scooters, with plans to launch electric motorcycles and even an electric car. The company also intends to deepen its local presence by scaling up investments in cell manufacturing, thereby increasing localization levels. With the EV market gaining traction in India, Ola Electric's IPO presents an opportunity for investors to join the journey of a company that has rapidly achieved profitability and is poised for further expansion.
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