Curves ahead for IPO-bound Ola Electric

Bhavish Aggarwal, the founder of Indian electric vehicle manufacturer Ola Electric, is seen by some as “India’s Elon Musk.”

Apart from founding EV companies, both entrepreneurs have the ability to build businesses in completely different industries, be it in EVs or AI.

See also: ‘India’s Elon Musk’ is on a warpath

It was fitting, then, that Ola’s entry into the EV market in 2020 was built on the acquisition of Amsterdam-based Etergo, a company referred to as the “Tesla of the scooter world.”

Ola Electric / Photo credit: Ola

Ola Electric is soon going to be a publicly traded company, much like Tesla. In its IPO, which is going live on August 9, the Indian EV firm is expected to raise over US$700 million.

However, the valuation of the company – at US$4 billion – marked a significant drop from the company’s US$5.4 billion valuation during its September 2023 funding round.

According to Aggarwal, the cut was done to make the public offering accessible and attractive to a wider range of investors.

Here are Tech in Asia’s key takeaways after reviewing the firm’s IPO document.

True market leadership or smoke and mirrors?

Ola Electric is banking on a home-field advantage. India is the world’s second-biggest market by domestic sales volumes of two-wheelers, even as the penetration of e-bikes remains low.

Of course, there is room for improvement: Government incentives for EV production and tax breaks should help to increase the adoption of EVs.

Within the country’s two-wheeler EV space, Ola is the market leader with a share of around 35% in Q4 of FYE 2024.

It has maintained its leadership in the two-wheeler EV market for three consecutive years, even as legacy players – such as TVS Motor, Bajaj Auto, and Hero MotoCorp – compete in the same field.

Reports have indicated, however, that Ola Electric sold some of its vehicles to its parent company ANI Technologies, which has been doing business as Ola Cabs. This could have allegedly helped the EV firm bump up its sales figures.

Bottom line is up

Flexing in-house muscle

Overseas expansion