Ola Electric raises $100M long term debt from Bank of Baroda for its Electric Scooter Production
According to an Ola press release, Ola Electric and Bank of Baroda signed a 10-year $100 million debt to fund and close Phase 1 of the Ola Futurefactory, Ola's global manufacturing hub for its electric two-wheelers. This is one of the country's largest long-term debt financing agreements in the electric vehicle industry.
“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,” says, Bhavish Aggarwal, Chairman and Group CEO, Ola.
The news comes just days after Ola, the ride-hailing giant, raised $500 million from Temasek and Warburg Pincus ahead of its initial public offering (IPO). Aggarwal, the company's CEO and cofounder, also contributed an undisclosed amount to the round.
Ola announced last December that it would invest Rs 2400 crore in the first phase of the factory. The company plans to develop a 500-acre site in Tamil Nadu, India. It will be the world's largest two-wheeler factory when it reaches full capacity of 10 million vehicles per year.
While Ola was laying off 1,400 employees in May 2020 due to a 96% drop in revenue, Ola Electric had acquired Amsterdam-based electric scooter company Etergo BV in order to launch its own line of scooters.
“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.
The Futurefactory, according to the statement, is nearing completion, with production trials of the much-anticipated Ola Scooter set to begin soon. The soon-to-be-released Ola Scooter will be built at the Ola Futurefactory, which will also serve as Ola's global EV hub for its scooters and other two-wheelers.
Ola Electric was founded in 2017 and became the fastest Indian unicorn when it joined the unicorn club in 2019. To date, it has raised approximately $307 million from leading investors such as Tiger Global Management, SoftBank, Tata Sons, Matrix Partners, Hyundai Motor and its subsidiary Kia Motors. A unicorn is a private company worth at least $1 billion.
“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,” says, Bhavish Aggarwal, Chairman and Group CEO, Ola.
The news comes just days after Ola, the ride-hailing giant, raised $500 million from Temasek and Warburg Pincus ahead of its initial public offering (IPO). Aggarwal, the company's CEO and cofounder, also contributed an undisclosed amount to the round.
Ola announced last December that it would invest Rs 2400 crore in the first phase of the factory. The company plans to develop a 500-acre site in Tamil Nadu, India. It will be the world's largest two-wheeler factory when it reaches full capacity of 10 million vehicles per year.
While Ola was laying off 1,400 employees in May 2020 due to a 96% drop in revenue, Ola Electric had acquired Amsterdam-based electric scooter company Etergo BV in order to launch its own line of scooters.
“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.
The Futurefactory, according to the statement, is nearing completion, with production trials of the much-anticipated Ola Scooter set to begin soon. The soon-to-be-released Ola Scooter will be built at the Ola Futurefactory, which will also serve as Ola's global EV hub for its scooters and other two-wheelers.
Ola Electric was founded in 2017 and became the fastest Indian unicorn when it joined the unicorn club in 2019. To date, it has raised approximately $307 million from leading investors such as Tiger Global Management, SoftBank, Tata Sons, Matrix Partners, Hyundai Motor and its subsidiary Kia Motors. A unicorn is a private company worth at least $1 billion.
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