Hero’s Munjal is in advanced talks to invest in Ola Electric

MUNJAL WILL FOLLOW RATAN TATA, CHAIRMAN EMERITUS OF TATA GROUP, AS AN INVESTOR IN OLA ELECTRIC

NEWDELHI/MUMBAI: Pawan Munjal might be the next big investor after Ratan Tata to invest in Ola Electric. Billionaire Pawan Munjal, chairman of Hero MotoCorp Ltd—India’s largest twowheeler maker by sales—is in advanced talks to invest in the electric mobility arm of ridehailing company Ola, said four people directly aware of the development.

An investment in Ola Electric Mobility Pvt. Ltd would be a major endorsement of the future potential of electric mobility in India at a time when Prime Minister Narendra Modi’s administration is pushing automakers and cab aggregators to shift to electric vehicles. Munjal will fol low Ratan Tata, chairman emeritus of Tata group, as an investor in Ola Electric.

Munjal has been discussing the potential investment over the last few months with Arun Sarin as well as the senior management of Ola Electric, one of the four people cited earlier said on condition of anonymity.

Sarin, a former chief executive of Vodafone Group Plc, was appointed as an independent director of Ola Electric in May. Sarin, an investor in Ola and Ola Electric, is also a mentor and adviser to Ola Electric.

“This deal has been in the works over the last few months and people close to Mr Munjal were aware of the ongoing negotiations. He intends to invest in different startups going forward and this is also one among them,” the person said.

The quantum of the investment could not be immediately ascertained.

An investment by Munjal will be significant for Bhavish Agarwal-led Ola since it will be the second fundraise from the promoter of an automobile company, the first being Tata.

The people cited earlier said Munjal, who has also invested in electric scooter manufacturing startup Ather Energy, is looking at investment opportunities in a range of startups in the future mobility ecosystem.