Temasek, Singapore's sovereign wealth fund, is allegedly planning to lead a USD 300-350 million investment round for its portfolio startup Ola Electric. The private equity fund is reportedly interested in investing USD 100-150 million in the electric vehicle manufacturer. According to media reports, the acquisition is in the final stages of due diligence, and the investment round is expected to raise Ola Electric's valuation to USD 6 billion, which is 20 per cent higher than the USD 5 billion valuation it received in its USD 200 million funding round.

Temasek made its first investment in Ola Electric in 2021 as part of a USD 53 million round, valuing the EV company at USD 2.7 billion. The development comes only days after it was revealed that founder Bhavish Aggarwal is in discussions with Catamaran Ventures, the investment firm founded by Infosys Co-founder NR Narayana Murthy. Catamaran was also believed to be interested in investing up to USD 100-150 million at the time, matching Temasek's commitment in the future capital round.

Notably, this may be the final time Ola Electric obtains equity investment as a private firm, as the electric two-wheeler manufacturer began recruiting IPO bankers last month in preparation for a potential IPO next year. Given the amount of time between now and then, however, speculation is prevalent that Ola Electric may file its preliminary IPO papers early next quarter.

The Bhavish Aggarwal-led company is scheduled to unveil a lower edition of its S1 scooter that will be priced lower than the Ola S1 Air. Following the government's decision to reduce FAME-II subsidies for electric two-wheelers, the company, like its competitors, has forced to boost the prices of its scooters. It has also decided to withdraw the S1 Air scooter's smaller 2kWh model.