Ola Electric raises $50M in debt from EvolutionX ahead of IPO
Ola Electric, in its DRHP filing in December 2023, said it is looking to raise $660 million in its initial public offering.
has raised $50 million in debt funding from debt financing platform, , said media reports.
The company raised the funding by issuing 41,000 non-convertible debentures (NCDs) at an issue price of Rs 1 lakh each, said reports, citing the company's RoC filings.
The EV two-wheeler maker, in October last year, raised Rs 3,200 crore in equity and debt funding from Temasek and SBI to fund its expansion and the setting up of its EV business.
It also said it would use the proceeds to set up its lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
Ola Electric's fundraise comes ahead of its much-awaited IPO, where, as per its draft red herring prospectus (DRHP), it plans to raise $660 million.
Additionally, there is a proposed offer for the sale of 95.2 million equity shares at a face value of Rs 10.
The company said it plans to invest Rs 1,600 crore for R&D, while its subsidiary Ola Cell Technologies will use Rs 1,226.4 crore for the construction of the Ola Gigafactory project, as per its DRHP filing.
The broader ecosystem hasn't been as lucky when it comes to fundraising. YourStory Research shows that venture capital funding at the end of the first quarter of 2024 fell 22%, compared to a year ago.
Indian startups raised a total of $2.5 billion in VC funding in the first quarter of 2024, i.e., in January, February and March. In Q1 2023, they raised $3.2 billion, according to YourStory Research.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director at Ola Electric.)
Edited by Megha Reddy