Ola Electric said on Thursday it has raised over $200 million in a new financing round at a valuation of $3 billion, up from $1 billion two years ago, as it looks to scale its electric vehicle manufacturing business in the South Asian market.
Falcon Edge Capital and SoftBank Vision Fund 2 co-led the financing round, the Bangalore-based startup said. TechCrunch reported last month that the startup was in talks to raise at over $2.75 billion.
The fundraise follows Ola Electric recently launching its first electric scooter, called Ola S1, that is priced at 99,999 Indian rupees, or $1,350. The electric scooter offers a range of 121 kilometers (75 miles) on a complete charge.
The startup, which was once the part of the ride-hailing giant Ola, said it will deploy the fresh funds to accelerate development of other vehicle platforms including electric motorbike, mass market scooter and its electric car.
“We’re proud to lead the EV revolution from India to the world. India has the talent and the capability to build technologies of the future for the industries of the future for the entire world. I thank our existing investors and welcome new ones to Ola. Together we will bring mobility to a billion and sustainability to the future,” said Bhavish Aggarwal, founder and chief executive of Ola, in a statement. Aggarwal is also the founder and chief executive of Ola Electric.
In recent quarters, Aggarwal has urged New Delhi, and players in the industry to evolve from using gasoline-powered vehicles and switch to those run by electric by 2025.
Meanwhile, Ola is seriously exploring the public markets and may file the paperworks for an initial public offering this year. India’s startup ecosystem, a journey which kickstarted in late 2000s, is finally beginning to produce firms that have matured to stages where they can become public companies. And retail investors are showing great interest, too.
Food delivery startup Zomato had a stellar debut on Indian stock exchanges earlier this year. Scores of other firms including Paytm, MobiKwik, CarTrade, Nykaa, and PolicyBazaar have filed the paperworks for their initial public offerings. Indian hospitality giant Oyo is expected to follow suit as soon as this week, TechCrunch reported earlier.