India: IPO-bound Ola Electric secures $50m debt from EvolutionX

India: IPO-bound Ola Electric secures $50m debt from EvolutionX

Photo: Visual from Ola Electric website

SoftBank-backed electric vehicle maker Ola Electric has raised about $50 million (Rs 410 crore) via non-convertible debentures (NCDs) from EvolutionX, per media reports.

The board at Ola Electric has passed a resolution to issue 41,000 NCDs at an issue price of Rs 100,000 each to raise Rs 410 crore, Entrackr reported.

This is the second debt financing for Ola Electric in the last six months. The company had raised $385 million in a mix of equity and debt funding from Temasek-led investors and the State Bank of India in October last year. Its valuation had reportedly touched $5.5 billion after a $140-million funding round led by existing backer Temasek in September last year.

The fresh infusion comes three months after Ola Electric filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO) to raise Rs 5,500 crore ($660 million).

The offering, which is the first by an EV maker in the country, will include an issue of fresh stock, with CEO Bhavish Aggarwal selling up to 47.4 million shares, the draft prospectus filed with the Securities and Exchange Board of India showed.

According to data available with Vahan, Ola Electric dominated India’s electric two-wheeler segment with a 41% market share in February. Its competitors in the space include TVS Motor, Bajaj Auto, and Ather Energy.

Besides, the company has been working on its lithium-ion cell manufacturing facility with an initial capacity of 5 gigawatt hours in phase I, which will be further scaled up in phases to 100 gigawatt hours at full capacity.

The company, however, continues to face competition from Uber, Rapido, and other local players in the Indian market.

Edited by: Joymitra Rai

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