Ola Electric secures $50 million in debt funding, advances IPO plans

Ola Electric secures $50 million in debt funding, advances IPO plans

Ola Electric has secured $50 million in debt funding from EvolutionX Debt Capital, a debt financing platform.

• Funding Details: The funding was raised through the issuance of 41,000 non-convertible debentures (NCDs) at an issue price of Rs 1 lakh each, adding to the Rs 3,200 crore raised in October last year.

• Ola Electric's IPO Plans: Ola Electric is gearing up for its IPO, aiming to raise $660 million as per its draft red herring prospectus (DRHP). The IPO includes a proposed offer for the sale of 95.2 million equity shares at a face value of Rs 10.

• Expansion Plans: The funds will be utilized for the expansion of Ola Electric's business and the establishment of its lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.

• Other Plans: The company intends to invest Rs 1,600 crore in research and development and Rs 1,226.4 crore for the construction of the Ola Gigafactory project through its subsidiary, Ola Cell Technologies.

Indian startups raised a total of $2.5 billion in VC funding in Q1 2024, a decrease from $3.2 billion raised in Q1 2023, indicating a challenging fundraising environment for the startup ecosystem.