The Busy Brains
26 May 2023
Ola Electric, backed by Softbank and Tiger Global, is set to list on stock exchanges by the end of 2023. The company has appointed Goldman Sachs and Kotak as managers for the IPO, aiming for a valuation higher than $5 billion.
Ola Electric, a leading electric vehicle (EV) two-wheeler maker backed by Softbank and Tiger Global, is preparing to list on stock exchanges by the end of 2023. To manage the initial public offering (IPO), the company has enlisted the services of investment bank Goldman Sachs and domestic bank Kotak, as reported today.
While the exact amount Ola Electric plans to raise in the IPO and the targeted valuation are yet to be finalized, the company is reportedly seeking a valuation higher than its previous $5 billion valuation from the 2022 fundraise, according to a Reuters report.
If Ola Electric sells a minimum of 10% of its shares in the IPO at the desired valuation, it could become India's largest IPO this year, despite the relatively subdued market conditions.
Meeting the timeline of filing draft documents, marketing to investors, and achieving the listing by the end of the year may prove challenging, as per sources cited by Reuters. However, CEO and founder Bhavish Aggarwal remains determined to adhere to the proposed timeline.
More investment banks are expected to be added to the deal as the IPO approaches its execution phase, according to the report.
Ola Electric, founded by Bhavish Aggarwal, who also established the ride-hailing firm Ola, is actively positioning itself to tap into India's burgeoning electric vehicle market. As a market leader in the EV scooter space, the company recorded its highest sales of approximately 30,000 scooters in April.
Aggarwal has emphasized Ola's commitment to operating in a world without incentives and subsidies as the company aggressively pursues growth and increases its investment.
In a March interview with ET, the startup founder highlighted the profitability of Ola's electric two-wheeler business, stating that the company achieved profitability at a rapid pace.
Beyond scooters, Ola Electric has plans to introduce electric motorcycles and even an electric car. The company is also scaling up its investments in cell manufacturing to enhance localization levels, as shared by the CEO.
As Ola Electric sets its sights on an IPO, the company aims to leverage its position in the EV market and capitalize on the growing demand for sustainable transportation solutions in India.