Ola Electric, the From cell to electric vehicles firm which is building the core technologies of the future has raised $50 million in debt funding from debt financing platform, EvolutionX Debt Capital, ahead of its Initial Public Offering, said media reports.
The EV firm boasts the largest integrated and automated E2W manufacturing plant in India, spread across 400+ acres* in Krishanagiri, Tamil Nadu, currently operates R&D facilities across India, UK and US including the Battery Innovation Centre. The firm is also developing industry leading cell and battery technology. The latest round of funding was raised by issuing 41,000 non-convertible debentures (NCDs) at an issue price of Rs 1 lakh each, said reports, citing the company’s RoC filings.
The EV two-wheeler maker, in October last year, secured Rs 3,200 crore in equity and debt funding from Temasek and SBI to fund its expansion and the setting up of its EV business. Ola Electric also said it would use the proceeds to set up its lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. Ola Electric’s fundraise comes ahead of its much-awaited IPO, where, as per its draft red herring prospectus (DRHP), it plans to raise $660 million.
Ola Electric plans ambitious Gigafactory Project
Furthermore, Ola Electric has in the pipeline a proposed offer for the sale of 95.2 million equity shares at a face value of Rs 10. The company said it plans to invest Rs 1,600 crore for R&D, while its subsidiary Ola Cell Technologies will use Rs 1,226.4 crore for the construction of the Ola Gigafactory project, as per its DRHP filing. The broader ecosystem hasn’t been as lucky when it comes to fundraising.
Latest research reveal that venture capital investments at the end of the first quarter of 2024 fell 22%, compared to a year ago. Indian startups raised a total of $2.5 billion in VC funding in the first quarter of 2024, i.e., in January, February and March. In Q1 2023, they raised $3.2 billion, according to a Research report.
