BENGALURU - Ola Electric is moving swiftly towards its initial public offering (IPO), with plans to file its draft red herring prospectus (DRHP) before December 20, aiming for an early next year launch, said media reports today citing persons familiar with the matter. The company, which recently converted into a public entity, is targeting a significant $700 million raise at a $10 billion valuation.
The strategic move comes as Ola Electric seeks to capitalize on the buoyant festive season sales, which have seen a month-on-month increase of 14% in electric two-wheeler registrations. Despite this uptick in sales, the company has faced financial challenges, with losses doubling in FY23 to INR 1,472 crore and expenses rising sharply to INR 3,383 crore. The reported EBITDA loss stood at INR 1,318 crore.
To bolster its market presence ahead of the IPO, Ola Electric has been aggressive with its retail strategy. The company launched a 'December to Remember' event, offering substantial price cuts on products such as the S1 X+ e-scooter, now priced at INR 89,999 after a INR 20K reduction.
The recent funding round for Ola Electric was led by Temasek and included significant contributions from the State Bank of India among others. The round totaled $998 million from investors including Alpha Wave and DIG investment, bringing the company's valuation to $5.4 billion post-funding in October.
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