Bhavish Agarwal led EV manufacturer has hired investment bank JP Morgan who is now reaching PEs to invest in Ola
Ola Electric will also use the fund to acquire businesses in same sector
Ola Electric earlier raised $100 Mn in debt which it later transferred to Ola Electric Technologies, – a wholly owned subsidiary incorporated to manufacture 2W,3W and reportedly 4W electric vehicles
Bengaluru-based Ola Electric, the electric two-wheeler manufacturing arm of Ola is in talks to raise $1 Bn from strategic and financial investors. Ola Electric which on India’s 75th Independence Day launched its two variants of electric scooters will be utilising the said amount to expand its presence in the market. It has hired investment bank JP Morgan to raise the new round of investment. The investment bank has now reached out to several private equity funds to invest in the electric vehicle manufacturer.
One of the people aware of the development told LiveMint that Ola Electric has a comfortable liquidity position but will need to ensure a comfortable debt-to-equity ratio to fund expansion and gain market share in the electric two-wheeler space that is expected to see a plethora of new launches. The fund will also help Ola Electric to acquire any startup in the space to further strengthen its presence.