Ola Electric valued at $5 billion in new financing
Ola Electric on Monday announced it had raised $200 million in a new funding round even as the spin-off of the Indian public transport giant struggles to deliver its first electric scooter to customers and questions on its work culture were raised.
Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss are among those to fund the new round, which values Ola Electric at $5 billion, up from $3 billion in September last year, the Bengaluru-based startup said. .
“I thank the investors for their support and look forward to partnering with them to take India’s electric vehicle revolution to the world,” said Ola Electric co-founder and CEO Bhavish Aggarwal. , in a press release. The startup is looking to expand into other categories, including cars, he said.
Ola Electric – which counts Tiger Global and Alpha Wave Global among its existing backers – announced its first electric scooter called the Ola S1 last year. Priced at around $1,350, the battery-powered scooter offers a range of 121 kilometers (75 miles) on a full charge.
This is more of a hypothetical/untested claim for most individuals, as the startup has delayed shipping the scooter several times. And at best, only a tiny fraction of the customers who had pre-ordered the vehicle received it.
Meanwhile, Bounce, another Bengaluru-based startup, has unveiled its own electric scooter which many analysts say promises to pack more than Ola’s offering.
Two-wheelers account for more than three quarters of all vehicles sold in India. The push from startups as well as major automakers, coupled with favorable government incentives in recent years, is beginning to put India’s push towards electric vehicles in the right direction. UBS analysts wrote in a report last week that they estimated 37% of all two-wheelers in India would be powered by electricity by the end of the decade.
But for this projection to happen, many factors must work in the right direction.
One of them could be the working culture at Ola, one of India’s biggest startups. Ola and Ola Electric have also seen several departures of key executives in recent months following what Indian news outlet Morning Context described as a toxic work culture and a distrustful chief executive. Aggarwal is also the co-founder and managing director of Ola, which recently raised capital at a valuation of $7.3 billion.