Bhavish Aggarwal-led Ola Electric is reportedly planning to file its draft red herring prospectus (DRHP) in the next two weeks as it gears up to go public early next year.
The EV unicorn is adopting an aggressive retail strategy, such as product launches at discounted rates and price reductions on existing offerings, aiming to fortify its market share before going public, Mint reported.
Earlier this week, Ola Electric has slashed the price of its S1 X+ e-scooter by INR 20,000. The vehicle is now available at INR 89,999.This is a part of the company’s ‘December to Remember’ campaign to further accelerate sales.
The startup wants to file its draft share sale papers before December 20, aiming to precede the year-end holidays when bankers and financial market participants traditionally take a break. Moreover, it wants to ensure the initial public offering (IPO) happens before next year’s Lok Sabha elections.
Recently, Ola Electric converted into a public company. As per reports, the startup plans to raise $700 Mn and is looking to target a market capitalisation of $10 Bn through its IPO.
Ola Electric raised INR 3,200 Cr ($384 Mn) in a funding round, which was a mix of equity and debt. While the equity part was led by Temasek, the debt part of the round was led by the State Bank of India.
It has raised $998 Mn in total funding and counts Alpha Wave, DIG investment as among its other marquee investors.
Ola Electric’s net loss almost doubled to INR 1,472 Cr in the financial year ended March 2023 (FY23) from Rs INR 784.1 Cr in the previous fiscal year on the back of the company’s rising expenses.
The startup reported an EBITDA loss of INR 1,318 Cr in FY23 as its total expenses flared up to INR 3,383 Cr as compared to INR 1,240 Cr in FY22.
Electric two-wheeler registrations grew 14% month-on-month (MoM) in November to cross the 85,000 units mark on the back of high demand for top electric vehicle manufacturers during the festive season. Ola Electric retained the top spot with its e-scooter registrations jumping over 14% MoM to 27,331 units in the month.
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