[Funding alert] Ola Electric raises $100M long term debt from Bank of Baroda
According to a press note shared by Ola, Ola Electric and Bank of Baroda, have signed a 10 year $100 million debt towards the funding and financial closure of the Phase 1 of the Ola Futurefactory Future.
Ola Electric and Bank of Baroda today signed a 10-year $100 million debt towards the funding and financial closure of Phase 1 of the Ola Futurefactory, Ola's global manufacturing hub for its electric two-wheelers, according to a press statement from Ola. This is one of the largest long-term debt financing agreement in the Indian electric vehicle industry.
Bhavish Aggarwal, Chairman and Group CEO, Ola, said -
“Today’s agreement for long term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time. We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world, and we are happy that Bank of Baroda has joined us in our journey.”
Last December, Ola had announced that it will be investing Rs 2400 crore for setting up the first phase of the factory. The company is coming up with a 500-acre site in Tamil Nadu, India. At full capacity of 10 million vehicles annually, it will be the world’s largest two-wheeler factory.
“The government has brought in several policies to incentivise make-in-India and to enable India to become a global EV leader. Ola is leading from the front, and we are delighted to partner with them for their EV business. The Ola Future factory will put India on the global EV map, and we are proud to be associated with them”, said Sanjiv Chadha, Managing Director and CEO, Bank of Baroda.
According to the statement, the Futurefactory is near completion, with the production trials of the much awaited Ola Scooter expected to commence soon. The soon-to-be-launched Ola Scooter will be manufactured at the Ola Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.
Edited by Anju Narayanan