Ola Electric is in advanced talks to raise more than $ 500 million in a new round of financing as the Indian firm seeks to scale its electric vehicle manufacturing business in the South Asian market, according to two sources familiar with the matter.
Falcon Edge Capital is in advanced talks to lead the round, which values Ola Electric between $ 2.5 billion and $ 3 billion (compared to $ 1 billion in its previous fundraiser in 2019), sources told TechCrunch. , requesting anonymity as the subject. it is private. Singapore’s Temasek is also holding talks, the people said.
The talks come at a time when transportation services giant Ola, the initial parent company of Ola Electric, is looking to apply for an initial public offering. The firm, which recently raised $ 500 million, has hired some bankers and is looking to file for the IPO later this year, according to a third person familiar with the matter.
The firm seeks to raise up to $ 1 billion, the person said, warning that the matter is not final. Indian media first wrote about the IPO negotiations.
Earlier this month, Ola Electric launched its first electric scooter, called the Ola S1, which is priced at 99,999 Indian rupees, or $ 1,350. The electric scooter offers a range of 121 kilometers (75 miles) on a full charge.
“Ola is the best product on the market today with significantly better characteristics than its peers. The incumbents, despite all their resources, have launched products that appear as another variant of an ICE product and lack punch. Overall, we have been specifically disappointed with both Bajaj and TVS on this front, ”Bernstein analysts wrote to clients in a report earlier this month.
“While startups like Ather have made significant efforts on the product, high prices, the significantly slow pace of expanding manufacturing, and restricted launch in just a few cities earlier were key drivers of weak sales. The crucial differentiators for Ola are: 1) Software-based features, 2) Range, top speeds and acceleration (the fastest EV scooter now), 3) Boot clearance, and 4) Color options. “
Ola / Ola Electric did not immediately respond to a request for comment.