Ola Electric recently raised $140 million, in funding from its investors such as Temasek Holdings. This investment has valued the company at around $5.4 to 5.5 billion. The company is currently making preparations for an IPO of $10 billion with a target of raising $1 billion in net proceeds.
Ola Electric recently secured a substantial $140 million in funding, primarily from its existing investors, including Temasek Holdings. This financial milestone, sealed on a Monday, was confirmed by reliable sources familiar with the matter.
Notably, Temasek Holdings contributed a significant portion of this funding, approximately $90 million, while the remaining sum was largely supplied by various family offices.
This latest round of fundraising values Ola Electric at an estimated range of $5.4 billion to $5.5 billion. This valuation surpasses the company’s previous round, during which it was valued at $5 billion under the leadership of Bhavish Aggarwal.
In prior reports from the media, it was disclosed that Ola Electric has been actively laying the groundwork for an initial public offering (IPO). The company has already engaged investment bankers in this pursuit and is setting its sights on a lofty valuation of $10 billion for the IPO.
The goal is to generate net proceeds of approximately $1 billion through this process. Sources close to the situation suggest that Ola Electric intends to file its draft red herring prospectus (DRHP) by the end of the upcoming quarter, with plans to launch the IPO in the final quarter of the current fiscal year.
Among Ola Electric’s principal shareholders are entities such as Temasek, SoftBank, Tiger Global Management, Edelweiss, Matrix Partners India, Kia Motors, and Alpha Wave Investors.
Interestingly, there have been indications that some of these investors are contemplating divesting their stakes in the company during the IPO, as revealed by one of our sources. It’s worth noting that the most recent infusion of funds into Ola Electric occurred in January 2022 when the company secured $200 million in investments.
