Temasek, SBI lead $384 million funding round in Ola Electric

Singaporean sovereign wealth fund Temasek and State Bank of India led a $384 million (₹3,200 crore) investment round in Bhavish Aggarwal-led electric vehicle (EV) manufacturer Ola Electric this week.

The fundraising comes ahead of the EV maker’s initial public offer (IPO), which is likely early next year.

While Temasek led the equity round, Ola Electric raised project debt from SBI in the round primarily aimed to fund its cell manufacturing facility and grow its EV business.

The company said it will use the fresh funds to set up a manufacturing plant in Krishnagiri, Tamil Nadu.

A Temasek spokesperson confirmed that the wealth fund was involved in the funding round.

Ola Electric, which last raised funds at a valuation of around $5 billion, is aiming for a valuation of about $10 billion in its IPO that is likely early next year.

The fresh fundraising comes after the company faced flak over the quality of its EVs, after-sales service, and allegations of misappropriation of a government subsidy program.

The company has emerged as India’s top-selling electric two-wheeler manufacturer, though it reported an operating loss of $136 million on a revenue of $335 million in FY23.

“We are committed to developing core technologies in EVs and cell and are rapidly scaling up manufacturing to accelerate the transition to sustainable mobility further,” founder and chief executive Bhavish Aggarwal said.