Temasek, a Singapore-based company valued at $5.4 billion, has invested $140 million in Ola Electric. The development occurs as part of a $250 million fundraising effort to prepare for the manufacturer of electric scooters’ first public offering. Before Ola Electric files documents for an initial public offering (IPO) of up to $1 billion, reports citing sources said that there may be another round of capital raising.
The financing round has been closed, and Ola will receive the funds within a week, according to reports by Reuters and CNBC-TV18 quoting sources. Currently, the corporation is valued between $5.4 and $5.5 billion.
The company sold about 95,000 e-scooters between April and August of last year, and it was valued at $5 billion last year. In the fiscal year that ended in March 2023, it reportedly experienced an operating loss of $136 million on $335 million in revenue.
Since it started selling e-scooters in late 2021, Ola has amassed a 32% market share and is now the industry leader in India. It competes with Ather Energy as well as businesses like TVS Motor and Hero Electric.
The manufacturer of electric scooters asserted that it was “on track to surpass $1 billion run rate by end of 2022” in June of the previous year. It added in a statement that the prediction “looks even stronger” in the future. Since 2019, investors have contributed almost $800 million to Ola Electric.