IPO-Bound Ola Electric Misses FY23 Revenue Goal, Posts Operating Loss Of $136 Mn

Bhavish Aggarwal-led electric mobility startup Ola Electric reportedly recorded an operating loss of $136 Mn (about INR 1,116 Cr) and revenue of $335 Mn (about INR 2,750 Cr) in the financial year 2022-23 (FY23), missing its publicly disclosed revenue goal.

Earlier, Ola Electric claimed to have surpassed INR 500 Cr in revenue in the first two months of FY23 and said it was on track to exceed $1 Bn in run rate by the end of the year.

The company reported the FY23 matrices with sales of over 1,50,000 electric scooters, Reuters reported citing sources.

An email sent to Ola Electric by Inc42 did not elicit any response till the time of publishing the article.

Last week, Reuters reported that Ola Electric laid out aggressive projections internally earlier this year, projecting its revenue to quadruple to $1.5 Bn in 2023-24. In FY24, it reportedly also plans to turn profitable. However, these projections were made before the government slashed the FAME-II subsidy for electric two-wheelers.

At 21,417 units, Ola Electric recorded its highest-ever vehicle registrations in March 2023, the last month of FY23. Though Ola Electric has maintained its leading position in the market so far this year, its sales have taken a hit since May, adversely impacted by FAME-II issues, like most other electric two-wheeler manufacturers.

The government’s decision to cut incentives under the FAME-II scheme reportedly forced Ola Electric and others to redraw their growth plans, as per the report. 

However, the company is undeterred by the issues and is focussed on its aggressive plans for building multiple product lines and further diversifying its escooter portfolio.

Almost a year after announcing the launch of its latest Ola S1 Air escooter model, Ola Electric opened the purchase window for the vehicle to the early ‘reservers’ and Ola community members on Thursday (July 27).

Meanwhile, Aggarwal said in December last year that 2023 and 2024 would witness the launch of more two-wheeler EV products, including a mass-market scooter, a mass-market motorcycle, and multiple premium motorcycles in sports, cruisers, adventure, and road bike categories.

Besides, Ola Electric is also expected to launch its first electric car in 2024, taking on the likes of BYD, Tata, Mahindra, and the soon-incoming Tesla, among others.

On the other hand, the startup has also commenced the construction of India’s biggest gigafactory for cell manufacturing at Krishnagiri in Tamil Nadu, while it is also aiming to make a stock market debut next year.

As per the Reuters report, despite the government’s incentives cut, Ola Electric is confident that it can become operationally profitable soon, which is currently a key metric watched by potential IPO investors.

“Ola is a market leader in a short while… That’s what their existing investors are bullish on,” a source was quoted as saying.

However, the company is yet to even file its FY22 financial statement. 

Ather Energy, one of the biggest competitors of Ather Energy, saw a 5X year-on-year (YoY) jump in its operating revenue to INR 408.5 Cr in FY22. Its loss grew to INR 344.1 Cr from INR 233.3 Cr in FY21.

Meanwhile, Ola Electric continues to face a high number of user complaints for its after-sales service and due to product quality issues. Recently, an Ola escooter burst into flames in Kerala’s Thiruvananthapuram.