SoftBank-backed Ola Electric nets $200m recharge at $5b valuation

Ola Electric, the electric vehicle (EV) arm of Indian ride-hailing firm Ola, has secured over US$200 million in a new financing round, raising its valuation to US$5 billion.

Photo credit: Ola

Investors including Tekne Private Ventures, Alpine Opportunity Fund, and Edelweiss Group took part in the round. Apart from cars, Ola Electric said it’s looking to sell more two-wheelers in categories including bikes.

The company said that it has built Futurefactory, the world’s largest two-wheeler manufacturing facility, over the last 12 months. It also launched e-scooter Ola S1 using a direct-to-consumer model, offering home test rides, doorstep delivery, and aftersales services.

The latest investment follows Ola’s plans to ramp up production and provide deliveries as scheduled. It comes amid allegations from a group of dealers, who claim that they received consumer complaints regarding non-adherence to committed timelines.

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Futurefactory, which is built on a 500-acre site in Tamil Nadu, will employ over 10,000 women at full capacity, according to Ola Electric. It aims to be the world’s largest women-only factory, and the only all-women automotive manufacturing facility globally.

In September 2021, the company raised over US$200 million in a round led by Falcon Edge, SoftBank, and others. Months earlier in July, Ola Electric raised US$100 million, the largest debt financing round in the Indian EV space.