Ola’s EV subsidiary raises $100 million from BoB
BENGALURU: Ola is raising $100 million from state-run Bank of Baroda (BoB) to partly finance the first phase of construction of what India’s largest ride-hailing platform claims will be the world’s largest electric twowheeler factory.
The funds are being raised as a long-term loan by Ola Electric Mobility Pvt. Ltd, the electric vehicle (EV) arm of the Bengaluru-based company. The plant is being built in Tamil Nadu’s Krishnagiri district. The factory will have an initial capacity of 2 million electric vehicles a year.
“Today’s agreement for longterm debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time,” Ola chairman and group chief executive officer Bhavish Aggarwal said. “We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world, and we are happy that Bank of Baroda has joined us in our journey”.
Ola said last December that it will invest ₹2,400 crore in the first phase of its so-called ‘future factory’. Aggarwal recently said on Twitter that the factory was nearing completion, and the Ola brand of electric scooters would be introduced shortly.
The fund-raising from Bank of
Baroda follows Ola announcing last Friday that it has raised $500 million for its core ride-hailing business, led by private equity firm Temasek Holdings Ltd and Plum Wood Investment Ltd, an affiliate of Warburg Pincus LLC, ahead of its planned public offering.
Ola’s electric vehicle factory is being built on a 500-acre site. The plant will have a capacity of 10 million vehicles a year.
“The government has brought in several policies to incentivise Make-in-India and enable India to become a global EV leader. Ola is leading from the front, and we are delighted to partner with them for their EV business. The Ola Future Factory will put India on the global EV map, and we are proud to be associated with them,” said Sanjiv Chadha, managing director and CEO, Bank of Baroda.
Last May, Ola acquired Amsterdam-based electric scooter maker Etergo with plans to launch its own EV version in 2021.