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Ola Electric’s tech arm to raise nearly $100 Mn via preferential share

EntrackrEntrackr · 2m ago
Ola Electric’s tech arm to raise nearly $100 Mn via preferential share
Medial

Ola Electric’s tech arm to raise nearly $100 Mn via preferential share Ola Electric Mobility Limited has announced that its material wholly owned subsidiary, Ola Electric Technologies (OET), has received board and shareholder approval to raise Rs 877.64 crore (nearly $100 million) through issuance of preference shares. According to a stock exchange filing on Tuesday, the fundraise will be executed via the allotment of up to 87.76 crore non-cumulative and non-participating 0.001% Series A Optionally Convertible Redeemable Preference Shares (OCRPS), each having a face value of Rs 10, to Ola Cell Technologies (OCT), another wholly owned subsidiary of the company. The issuance will be carried out on a preferential basis through private placement in one or more tranches. This move follows shareholder approval in August, which allowed variation in the objects and utilization of IPO proceeds. At that time, Ola Electric had said it secured approval to reallocate IPO proceeds for capital deployment in India’s electric two-wheeler market. Ola Electric Technologies (OET) is Ola Electric’s core manufacturing and technology arm, leading electric two-wheeler production and battery innovation. OET drives the scaling of Ola’s EV ecosystem, from vehicle platforms to advanced battery technology. Its wholly owned subsidiary, Ola Cell Technologies (OCT), focuses on indigenous cell R&D and large-scale manufacturing, supporting vertical integration and reducing dependence on imported cells. In August, Ola Electric jumped to second position among electric two wheeler manufacturers. The company's operating revenue reduced 50% to 828 crore in Q1 FY26, compared to Rs 1,644 crore in the previous year of the same quarter. Its losses went up 23.3% to Rs 428 crore in Q1 FY26, compared to Rs 347 crore in the same quarter last year. At the end of today's trading session, Ola Electric’s share price traded at Rs 56.95 with a market capitalization of Rs 25,119 crore (approx $2.8 billion).

Decoding Ola Electric’s RHP fine print and FY24 numbers

EntrackrEntrackr · 1y ago
Decoding Ola Electric’s RHP fine print and FY24 numbers
Medial

Electric mobility company Ola Electric received approval from SEBI for its IPO and filed the red herring prospectus (RHP) on July 26. The company aims to raise Rs 6,146 crore ($740 million) which includes a fresh issue of Rs 5,500 crore ($662.7 million) and an offer for sale of up to 84,941,997 shares amounting to Rs 646 crore ($77.8 million) considering upper limit (Rs 76) of the price band. The company has set a price of Rs 72 to 76 per share. Ola Electric’s IPO will be open on August 2 for retail investors and their anchor book for its initial public offering (IPO) will open on August 1, 2024. The closing date of the IPO is August 6, 2024. It has appointed Kotak, BOFA Securities, Axis Capital, SBI Capital, CITI, Golaman Sachs, ICICI and BOB Capital as their lead managers. Entrackr has reviewed Ola Electric’s DRHP to decode its IPO blueprint. Ola Electric’s current captable According to the revised DRHP, Bhavish Aggarwal is the largest stakeholder in Ola Electric with 36.94% followed by SoftBank which holds 21.98%. Tiger Global commands 6.03% while Alpha Wave and Matrix Partners (now Z47) hold 3.49% and 3.43%, respectively. At the same time, Ola Electric’s employee stock options (ESOPs) pool stood at 7.67% of the total share capital. Who is selling in the IPO? Apart from Hyundai Motor and ANI Technologies (Ola Cabs), every major stakeholder is participating in Ola Electric’s offer for sale. During the sale of 84.9 million shares, Aggarwal is offloading 37.91 million shares amounting to Rs 288.2 crore at Rs 76 per share (upper limit of the price band), representing 2.78% of his total shareholding in Ola Electric. SoftBank will dilute its stake by 2.68% with 1.48x returns, and Tiger Global will sell 1.99% of its holding marking 6.5x gains. Alpha Wave and Temasek will sell 2.68% and 0.16% of their holdings with 1.22x and 1.01x returns, respectively. As an early backer of Ola Electric, Matrix Partners first invested in 2018, allowing them to benefit from a lower average cost of acquisition at Rs 8.22 per share. In contrast, Tiger Global’s average cost of acquisition was Rs 11.70 per share, and SoftBank invested at Rs 51.37 per share. Importantly, based on the price band of Rs 72-76 that will be available to the public, the investors above will realize specific returns from Ola Electric. Where will the IPO proceeds be utilized? According to the DRHP, out of the Rs 5,500 crore in fresh funds, Rs 1,227.6 crore will be allocated to capital expenditure, Rs 800 crore to debt payment, and Rs 1,600 crore for research and development. Ola Electric will also invest Rs 350 crore in organic growth initiatives, with the remaining amount will be used for general corporate purposes. Financial standing as of FY24 Ola Electric has shown strong growth over the past two fiscal years, with revenue increasing 13.4 times from Rs 373 crore in FY22 to Rs 5,010 crore in FY24, solely driven by sales of electric scooters. The hyper-growth has come at an efficient cost as its losses rose only 7.6% to Rs 1,584 crore in the last fiscal year (FY24) from Rs 1,472 crore in FY23. Where did Ola Electric spend the most during FY24? The SoftBank-backed firm allocated approximately 70% of its expenses to the cost of materials. Among these costs, cells comprised 32.7%, and power electronics accounted for 14.79%. Motors and other components collectively made up the remaining expense. Notably, out of the total cost of materials, Ola Electric imported 36.86% alone from China ( Rs 1,618 crore) in the form of lithium-ion cells, magnets, amplifiers, and electronic integrated circuits. Revenue breakdown by scooter model and units sold Ola Electric offers its scooter in five variants: Ola S1 Pro (Gen1), Ola S1 Pro (Gen2), Ola S1, Ola S1 Air, and Ola S1X. The company sold 3,29,618 scooters in FY24 which is more than 2X as compared to FY23. Ola S1 pro (Gen1 and Gen2) cumulatively generated 59.62% of the total revenue while Ola S1 Air and Ola S1 X+ added 18.93% and 10.66% of revenue to the company’s coffers. Importantly, the cancellation rate as a percentage of fully paid and confirmed orders rose to 9.14% in FY24, up from 7.69% in FY23. Ola electric has a gross margin of 12.58% while TVS Motos, Eicher Motors, Bajaj Motors and Hero MotoCorp have gross margins 37.65%, 45.69%, 28.92% and 32.49%, respectively.

Vanguard values Ola at $1.25 Bn

EntrackrEntrackr · 7m ago
Vanguard values Ola at $1.25 Bn
Medial

US-based asset management company Vanguard has marked down Ola’s valuation to $1.25 billion, according to a SEC filing in the US. This represents more than an 80% drop from its peak valuation of $7.3 billion in 2021. In February 2024, Vanguard had valued the Bhavish Aggarwal-led company at less than $2 billion ($1.88 billion) for the first time. However, it later revalued the company at around $2 billion in November last year. This development comes as Ola continues its push toward a public listing, even as it loses ground in the ride-hailing space (cabs, autos, and bikes). Rapido has emerged as the market leader, followed by Uber, with Ola now relegated to third place. In August last year, CEO Bhavish Aggarwal announced that Ola Cabs would be rebranded as Ola Consumer, consolidating its financial services, cloud kitchens, and electric logistics under one umbrella. Although Ola converted into a public entity in November 2024 and has been evaluating IPO options since November last year, it has yet to make concrete moves toward a listing. Analysts suggest that Ola is likely to delay its IPO plans by at least six months, citing unfavorable market conditions—especially in light of the declining market cap and share price of Ola Electric. During FY24, Ola’s operating revenue declined by 5.5% to Rs 2,012 crore, down from Rs 2,128 crore in FY23. However, the company narrowed its losses significantly to Rs 10 crore in FY24, compared to Rs 623 crore in the previous fiscal year. The Bengaluru-based firm also turned EBITDA profitable in FY24. Meanwhile, its rival Rapido reached unicorn status last year after raising $200 million at a valuation of $1.1 billion. The Swiggy-backed company also surpassed Ola in terms of combined daily rides across bike taxis, autos, and cabs in Q2 FY25. Despite losing market share, Ola’s ride-hailing business remained more than twice the size of Uber’s and 2.5 times that of Rapido in terms of revenue. In FY24, Ola’s ride-hailing income stood at Rs 1,761 crore, compared to Uber’s Rs 807 crore from its mobility operations. Rapido reported Rs 648 crore in revenue for the same period, while managing to cut its losses by 45% to Rs 371 crore. While this valuation downgrade may not have a direct financial impact on Ola, it could weigh on internal morale—especially as the company weighs its public market debut.

Ola Electric losses surge 2X to Rs 862 Cr in Q4 FY25, revenue declines 62%

EntrackrEntrackr · 6m ago
Ola Electric losses surge 2X to Rs 862 Cr in Q4 FY25, revenue declines 62%
Medial

Ola Electric saw a 62% year-on-year decline in revenue in Q4 FY25, while its losses surged 106%, underscoring a tough quarter for the SoftBank-backed electric mobility company. Ola Electric witnessed a turbulent financial performance during the fourth quarter of FY25, as its revenue saw a sharp year-on-year decline of 62%. In parallel, the company’s losses more than doubled, indicating the mounting challenges faced by the SoftBank-backed electric mobility firm. Ola Electric’s revenue from operations decreased to Rs 611 crore in Q4 FY25 from Rs 1,598 crore in Q4 FY24, its consolidated financial statements sourced from the National Stock Exchange show. For the full fiscal year (FY25), Ola Electric’s operating revenue decreased 10% to Rs 4,514 crore in FY25 from Rs 5,010 crore in FY24. Income from the sale of electric scooters was the sole source of revenue for Ola Electric while the collection from the sale of batteries contributed only a small portion in the last quarter of the previous fiscal year. For the EV scooter maker, material procurement made up 33% of the total costs at Rs 527 crore in Q4 FY25. Other major expenses included employee benefits, advertising, and technical support, pushing the total quarterly burn to Rs 1,598 crore. For the full fiscal year ending March 2025, total expenses rose to Rs 7,185 crore. A higher decline in sales caused Ola Electric's losses to rise by 106% in Q4 FY25, reaching Rs 862 crore compared to Rs 418 crore in the same quarter of the previous fiscal year (Q4 FY24). For FY25, the firm’s losses stood at Rs 2,276 crore in FY25, up from Rs 1,584 crore in FY24. Recently, Ola Electric Mobility has approved a plan to raise up to Rs 1,700 crore through debt instruments. The Bhavish Aggarwal-led company secured the second position in the electric two-wheeler segment in April, with TVS Motor emerging as the market leader. For the first time, Ather Energy has surpassed Ola Electric in quarterly revenue. In Q4 FY25, Ather reported an operating revenue of Rs 676 crore, ahead of Ola Electric’s Rs 611 crore. At the close of today's trading session, Ola Electric's stock was priced at Rs 53.20, giving the company a market capitalization of Rs 23,465 crore.

Z47 stake in Ola Electric falls below 2% after recent partial exit

EntrackrEntrackr · 4m ago
Z47 stake in Ola Electric falls below 2% after recent partial exit
Medial

Z47 stake in Ola Electric falls below 2% after recent partial exit Ola Electric’s early backers, Z47 (formerly Matrix Partners India) and Tiger Global Management, have trimmed their stakes in the Bengaluru-based company during the April–June 2025 quarter, as per stock exchange disclosures filed for the period. Z47 reduced its holding from 2.72% to 1.93%, a cut of approximately 0.81 percentage points. Based on an average share price of Rs 41, the VC firm is estimated to have earned around Rs 147–150 crore from the sale. Tiger Global also marginally reduced its stake from 3.45% to 3.24%, with an estimated Rs 39–45 crore. Its remaining stake, held via Internet Fund III, is currently valued at Rs 587 crore. The reduction in its stake in Ola Electric comes as Z47 actively explores secondary stake sales in other portfolio companies, including OfBusiness, Razorpay, and Dailyhunt’s parent VerSe. Despite the partial exits, both Z47 and Tiger Global remain on Ola Electric’s cap table with meaningful minority stakes. SoftBank, AlphaWave, Temasek, and Citigroup are some notable investors in the EV firm. Ola Electric’s revenue continues its downward spiral with yet another sharp drop in the latest quarter. Its revenue from operations decreased by 49.6% to Rs 824 crore in Q1 FY26, compared to Rs 1,644 crore in Q1 FY25. Its grew 23.3% year-on-year to Rs 428 crore during the same period. The company is currently trading at Rs 40.7 per share (as on 02 PM) with a total market capitalization of Rs 17,925 crore ($2.1 billion). Ola Electric also slipped to the third spot in July with 17,848 registrations, down 57% YoY, as its market share fell to 17.35%. Meanwhile, Ather Energy narrowed the gap with 16,231 units and a 15.78% share. The dip adds to Ola Electric’s mounting challenges as rivals like TVS and Bajaj consolidate their positions at the top.

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