Ola Electric raises $100m in largest debt-financing deal in Indian EV space

India-based ride-hailing firm Ola announced that its electric vehicles (EV) unit Ola Electric has raised US$100 million in debt financing.

More funding details

• Lead investor:  Bank of Baroda

More company updates

• Ola Electric said its agreement with India-based Bank of Baroda is the largest long-term debt-financing agreement in the Indian EV space.
• The 10-year debt of US$100 million will be used for the funding and financial closure of the first phase of Ola Futurefactory, the company’s global manufacturing hub for its electric two-wheelers.
• The Ola Futurefactory is being built on a 500-acre site in Tamil Nadu, India. At a full production capacity of 10 million vehicles annually, it will be the world’s largest two-wheeler factory, the company said in a statement.
• The ride-hailing firm also said that the factory’s first phase is nearing completion, to be followed by the trial production of its Ola Scooter. The Ola Scooter will be manufactured at the factory.
• In December 2020, Ola announced its plans to invest US$326.3 million to set up the world’s largest scooter factory in Tamil Nadu.
• The company also voiced its plans to invest US$2 billion to set up 100,000 EV-charging points in India as part of its EV push in the country.

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