Ola2 Electric gears up for India's largest automotive IPO by early 2024

Ola Electric, India's largest electric vehicle (EV) company, is said to be in talks with financial and legal institutions for one of India's most-awaited initial public offerings (IPOs) by early 2024.

According to sources, the company is in talks with Kotak, Goldman Sachs, Citibank, and others as banking partners for the IPO. It has roped in leading law firms like Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas as legal advisors.

The company has just secured $300 million in funding, led by a sovereign fund, pushing the valuation from $5 billion to $6 billion.

In light of the government's push for EVs, rapid consumer adoption, and recent reports of increased valuation of Ola's two-wheeler business that has cemented the company's position as the market leader, industry experts are speculating this to be one of the most coveted and iconic IPOs in Indian history. The EV industry is expected to have a strong inflexion by the end of this year, and Ola is expected to lead the EV transition in the country.

According to industry experts, Ola has shown unprecedented top-line and bottom-line growth and is well-placed for a successful IPO. The company is already at an annual revenue run-rate of over $1 billion and is now EBITDA (earnings before interest, taxes, depreciation, and amortisation)-positive. Owing to its solid business model, scale benefits, and vertical integration, including into cell technology, Ola's two-wheeler EV business is speculated to be already profitable in just 18 months, making it the only EV company in India to achieve the landmark.  

The company is expected to launch 5-6 models in the scooter segment in the coming months and is also reported to foray into the motorcycle segment (with 3-4 models) by the end of the year. This is expected to scale Ola's business significantly with strong growth in revenue and market share.

Going forward, the company will integrate its indigenously manufactured cells across its two-wheeler portfolio. The construction of Ola's Gigafactory is already in full swing, and it is expected to begin mass production of its cells by the end of the year.

Ola Electric has captured almost 40 per cent share of the EV scooter market, consistently securing the leading position in the market for the past eight months. With almost 300,000 vehicles currently running on the road, Ola has emerged as India's biggest EV manufacturer in terms of both volume and revenue.

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