IPO-bound Ola Electric cancels electric car project: Report
The SoftBank-backed company is planning to focus on its e-scooter business as it prepares for an initial public offering this year.
Ola Electric has cancelled its plans to launch electric cars to focus on its e-scooter business, according to a Reuters report, citing two people with direct knowledge of the matter.
The SoftBank-backed company is planning to focus on its existing e-scooter business as it prepares for an initial public offering this year.
Ola Electric is India’s largest electric two-wheeler manufacturer and currently competes with companies such as Ather Energy, which is also preparing for an IPO.
In 2022, Ola’s founder, Bhavish Aggarwal, had planned to launch an electric sports car in the next two years, but according to the report, the company has shelved it prior to its planned IPO.
One of the sources told Reuters that the focus is on the two-wheeler market, and with mass electrification being some time away, charging infrastructure has to be developed.
According to another source in the report, the car project has been put off for at least two years, and the company will focus on e-scooters and battery production.
Ola Electric did not respond to a request for comment sent by YourStory.
According to multiple reports, the company is expected to launch its IPO at a valuation lower than its earlier estimation of $5.5 billion.
Moneycontrol had reported that the company is planning to launch its IPO in August, citing people familiar with the matter.
Ola Electric, a subsidiary of India-based ride-hailing platform Ola, filed its draft red herring prospectus with SEBI in December 2023.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)
Edited by Jyoti Narayan
