Ola Electric to raise USD 300 million for expansion plans

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Ola Electric to raise USD 300 million for expansion plans

According to sources close to the company, Ola Electric is close to raising funds of around USD 300 million for expansion plans and to meet other corporate needs.

The new round of fundraising came with the expectation that Ola Electric would break even soon and achieve profitability.

The funds would be raised from existing and marquee global investors and sovereign funds, according to sources.

With close to a billion dollar annual revenue run rate, Ola Electric led the pack of Indian EV manufacturers by volume and revenue within a year of beginning deliveries of its electric scooters - Ola S 1 and Ola S 1 Pro.

The company plans to develop core technologies like cell manufacturing and to expand its product portfolio across segments of two-wheelers and four-wheelers.

Ola Electric has signed an MoU with the Tamil Nadu government to set up the world's largest EV hub at a single location, in Krishnagiri, which will include the company's cell factory, four-wheeler factory and supplier ecosystem. Sources said the company intends to expand its existing two-wheeler factory.

The electric two-wheeler manufacturer has an average run rate of over 20,000 units per month. The expansion plan includes the opening of 500 Experience Centres in all major cities by April 2023.