From Roads To Stocks: Bhavish Aggarwal’s Ola Electric Eyes IPO In 2024

As per the latest buzz in the market, electric two-wheeler major Ola Electric is eyeing a listing on the bourses early next year. The development comes at a time when the global economic slowdown and the downturn in the equities market has resulted in multiple Indian tech startups deferring their IPO plans since 2022. The Bhavish Aggarwal-led EV startup also continues to face backlash from its customers for poor after-sales service.

Several publications, citing sources, have reported that Ola Electric is planning to go for an IPO in 2024.

As per the reports, Ola Electric is in talks with Kotak, Citibank, Goldman Sachs, and other banking partners for the public offering. It has also roped in Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas as legal advisors for the same.

Ola Electric was not immediately available to respond to Inc42’s queries on the issue. 

A source told Moneycontrol that Ola Electric has not finalised any timeline for the IPO yet but the target is to launch it before the general elections next year.

Besides, the publication’s sources also indicated that the IPO will comprise a combination of primary and secondary share offerings. Ola Electric has also not decided on the valuation yet given the EV market is nascent in India. However, founder and CEO Aggarwal is aiming for a market capitalisation of $10 Bn.

Meanwhile, as per the report, Ola Electric’s motorcycle launch and the progress of establishing its battery innovation centre in Bengaluru would be a few crucial events to watch out for in the run-up to the IPO.

Ola Electric’s Big Ambitions 

The EV startup has been plagued by multiple controversies since last year, including product quality issues, escooter fire, service problems, and misappropriation of FAME-II subsidy. However, this has not deterred the company from going ahead with its big plans and it has continued to launch new stores and products and announce new offerings. 

Earlier this year, the startup launched two new variants of its existing Ola S1 and Ola S1 Air scooters at a more affordable price. 

In December 2022, Ola Electric said it plans to launch more electric two-wheeler models in 2023 and 2024, including a mass market scooter, a mass market motorcycle, and multiple premium motorcycles. The startup also opened its 500th experience centre in India two weeks ago.

Besides, 2024 would be a key year to watch given Aggarwal’s announcement last year about the company launching its first electric car in that year.

Ola Electric is also investing more than INR 7,600 Cr to set up manufacturing facilities in Tamil Nadu over the next five years for its three-wheelers, EV components, and battery manufacturing, which would become an EV hub.

Media reports claimed recently that Ola Electric has raised $300 Mn in a latest funding round at a valuation of $6 Bn. However, officially, Ola Electric’s last round took place in January 2022, which saw participation from Tekne Private Ventures, Alpine Opportunity Fund, and Edelweiss among others. It raised $200 Mn at a valuation of $5 Bn then.

Meanwhile, Ola Electric continues to lead the electric two-wheeler market. As per Vahan data, its vehicle registrations stood at 21,957 units in April growing from 21,404 units in March. In May, the company’s vehicle registrations stand at 17,647 units so far.

Last year, Aggarwal said Ola Electric was expecting its two-wheeler EV business to turn profitable in 2023.

Amid all this, it remains to be seen if Ola Electric is able to stick to its 2024 IPO plans given that Aggarwal’s ride-hailing business Ola has been deferring its IPO since 2022. 

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