Ola Electric, an Indian EV startup funded by SoftBank, surges 20% on its initial valuation of $4.8 billion.
Ahead of the Initial Public Offer (IPO), Bhavish Aggarwal, the owner of Ola Electric and the CEO of Ola Cabs, talks throughout an interview with the media.
In its first trading day on Friday, shares of Ola Electric jumped by 20%, valuing the Indian startup of electric vehicles at approximately $4.8 billion.
Ola Electric raised almost $730 million through its initial public offering in Mumbai by pricing its shares at 76 rupees, or 91 cents. Reuters claims that it is the largest listing in India for this year.
By 3:52 p.m. local time, the value of the shares was approximately 91.20 rupees.
The company's first-day increase is the result of investors' bets that it will emerge as a major player in India's electric cars market at a time when the government is taking steps to support the sector.
Just two and a half years ago, Ola Electric, a manufacturer of electric scooters, shipped its first unit. In India, two-wheelers are the most widely used form of transportation.
According to research from McKinsey & Co., electric two-wheelers in particular are predicted to make up 60% to 70% of all new scooter sales in India by 2030.
As it gets ready to release its first electric motorcycle product in the second half of 2025, Ola Electric is attempting to capitalize on this trend.
The venture, which was started by well-known businessman Bhavish Aggarwal, is marketing itself as a business that can handle everything, just like Tesla, from design to manufacture and batteries.
However, as of right now, it doesn't seem like the corporation has any intentions to enter the auto industry. Temasek, an investment group based in Singapore, and SoftBank are two well-known investors in Ola Electric.
According to the firm, the IPO profits would be used to assist the growth of its gigafactory battery production, pay off debt, and fund additional research and development.
The company's losses increased in the year that ended on March 31, despite a 90% increase in revenue. The business has not yet made a profit. Additionally, Aggarwal is a co-founder of Ola Cabs, an Indian ride-hailing business.
