Ola Electric raises $300 million at a valuation of $6 billion

Electric scooter manufacturer Ola Electric has raised $300 million in its most recent investment round, increasing its worth to $6 billion. In January 2022, the company raised $200 million at a $5 billion valuation.

In the prior transaction, investors including Tekne Private Ventures, Alpine Opportunities Fund, and Edelweiss contributed $200 million to Ola Electric. The business has so far secured about $900 million in capital across several stages.

The company will immediately increase the production capacity of electric two-wheelers from 0.5 million to 2 million per year using the money from the most recent deal.

The money will also assist the company in building a battery factory for advanced cell chemistry, for which it has already qualified for incentives under the production-linked incentive programme. A facility for electric passenger cars is also in the works and could materialise sometime in 2024.

Although, the government's recent decision to reduce the FAME II subsidy on each scooter by nearly a third is one of the company's many serious hurdles. Without the subsidy, the corporation could lose ₹40,000-₹50,000 on each scooter, as a result the company may raise prices by 10% to 15%.