Ola Electric raises Rs 100 Cr debt ahead of IPO

Ola Electric, preparing for its IPO, has secured Rs 100 crore (around $12 million) in debt from Alteria Capital, marking its second debt funding round in 2024. The company's board approved a special resolution to issue 10,000 non-convertible debentures at Rs 1,00,00 each, raising Rs 100 crore, as shown in regulatory filings from the Registrar of Companies (RoC). This follows a $50 million debt funding round from EvolutionX two months prior.

The debentures have an interest rate of 13.8% per annum, with an additional 2% interest per month in case of default. According to TheKredible, Ola Electric, led by Bhavish Aggarwal, has raised over $1 billion through equity and debt, valued at $5.4 billion in the latest round.

In December 2023, Ola Electric filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to raise Rs 5,500 crore ($660 million) through an IPO. The company has received approval from SEBI for the public listing. The DRHP indicates that Bhavish Aggarwal is the largest stakeholder with 36.94%, followed by SoftBank with 21.98%. Tiger Global, Indus Trust, and Alpha Wave hold 6.03%, 3.85%, and 3.49%, respectively.

Ola Electric experienced significant growth in FY23, with revenues soaring seven-fold to Rs 2,631 crore from Rs 373 crore in FY22. However, losses also increased by 87.76%, reaching Rs 1,472 crore for the fiscal year ending March 2023.

In the competitive two-wheeler electric vehicle market, Ola Electric, backed by SoftBank, rivals companies like Hero Electric, Ather Energy, and TVS. According to Vahan data, Ola Electric holds a 49% market share in two-wheeler EVs, with 37,191 e-scooter registrations in May.

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