Ola Electric, an Indian electric vehicle manufacturer, is planning to go public through a stock market listing by the end of 2023. According to a source familiar with the matter, the company has enlisted the services of investment bank Goldman Sachs and domestic bank Kotak Mahindra to manage the share sale. Ola Electric, known for its electric scooters, has garnered support from prominent investors such as SoftBank Group Corp and Tiger Global Management. In its last funding round in 2022, the company achieved a valuation of $5 billion. The source further added that more investment banks may be added to the deal as it progresses.
Ola Electric, founded by Bhavish Aggarwal, who is also the founder of ride-hailing firm Ola and a competitor to Uber, aims to capture India’s promising electric vehicle market. The company experienced its highest sales in April, selling approximately 30,000 electric scooters, making it the market leader in the EV scooter segment. While Ola Electric has not finalized the amount it intends to raise or the valuation it will seek in the initial public offering (IPO), the source revealed that it aims for a valuation higher than $5 billion.
Should Ola Electric sell a minimum of 10% in the IPO, which is the legal requirement for listing, it has the potential to become India’s largest IPO this year, even in the face of lackluster market conditions. The source cautioned that meeting the ambitious timeline of filing draft documents, marketing to investors, and listing by the end of the year may pose challenges. However, CEO Bhavish Aggarwal is reportedly determined to adhere to the proposed timeline.
The move to go public signifies Ola Electric’s intention to capitalize on the growing demand for electric vehicles in India. By accessing the public market, the company aims to secure funds for its future expansion plans, including research and development initiatives and the expansion of its electric vehicle portfolio. The IPO also presents an opportunity for investors to participate in India’s electric vehicle revolution and support Ola Electric’s mission to promote sustainable transportation.
The appointment of Goldman Sachs and Kotak Mahindra as advisors highlights Ola Electric’s commitment to a successful IPO. Both institutions possess extensive experience in managing IPOs and have facilitated numerous high-profile listings in the past. Their involvement is expected to instill confidence in potential investors and provide valuable guidance to Ola Electric throughout the IPO process.
As Ola Electric gears up for its stock market listing, the company continues to innovate and expand its product offerings. The success of its electric scooters demonstrates the growing acceptance and demand for electric vehicles in India. With a focus on providing customer-centric solutions and driving the adoption of electric vehicles, Ola Electric is well-positioned to play a significant role in the country’s sustainable mobility landscape.
While the specific details regarding the IPO, including the timeline and valuation, are yet to be finalized, Ola Electric’s plans to go public represent a significant milestone in its journey. As it moves forward with its expansion efforts, the IPO will attract attention from investors and industry observers, serving as a crucial moment for Ola Electric’s growth and impact on India’s electric vehicle market.
