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Decoding Ola Electric’s RHP fine print and FY24 numbers

EntrackrEntrackr · 11m 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.

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Ola Electric’s Secretary and Compliance Officer Pramendra Tomar resigns

YourStoryYourStory · 9m ago
Ola Electric’s Secretary and Compliance Officer Pramendra Tomar resigns
Medial

- Pramendra Tomar, secretary and compliance officer of Ola Electric, has resigned citing personal reasons and commitments. - The resignation is effective from October 1, according to a BSE filing. - Ola Electric is in the process of appointing a new candidate for the position of company secretary. - Tomar joined Ola Electric in 2022 and has considerable experience as a corporate lawyer and in company secretarial positions. - Ola Electric's shares have been struggling at the stock exchanges, with the price dropping below Rs 100 on Monday but regaining some ground on Tuesday. - The company reported a second straight month of sales drop in September, while competitors such as Ather Energy, TVS Motor, and Bajaj Auto saw sales numbers rise. - Ola Electric has been facing numerous complaints about its vehicles, and it has created a new service team to address these issues. - In September, Ola Electric introduced the 'Network Partner Program' to expand its sales and service networks across India and onboard 10,000 partners by 2025. - Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric (Disclaimer).

Decoding Rapido’s $120 Mn unicorn round

EntrackrEntrackr · 11m ago
Decoding Rapido’s $120 Mn unicorn round
Medial

Mobility startup Rapido recently turned unicorn after raising $120 million in a Series E funding round from WestBridge Capital through its various investment vehicles including SETU AIF and Konark. While the firm didn’t announce the funding officially, Entrackr has sifted through its regulatory filings to decode every detail of the round which was entirely led by WestBridge —an uncommon deal in the ecosystem. The board at Rapido has passed a special resolution to issue 10 equity, 95,479 Series E, and 95,489 Series E1 compulsory convertible preferred shares at Rs 52,467 each to raise Rs 1,002 crore (approximately $120 million) from WestBridge Capital through its 3 investment vehicles including SETU AIF, Konark, and MMPL Trust. Notably, shares issued worth Rs 501 crore were fully paid-up shares while the other 50% is partly-paid up. This essentially means that Rapido will receive the partly paid amount (Rs 501 crore) in tranches. Rapido will use the proceeds for expansion and growth, as per filings. According to the startup data intelligence platform, TheKredible’s estimates, Rapido was valued at around Rs 8,517 crore (approximately $1.02 billion) in the series E round. With this investment, WestBridge remained the largest external stakeholder with 32.88%, followed by Swiggy and Nexus Ventures, which own 12.32% and 8.19%, respectively. See TheKredibe for the complete shareholding pattern. Rapido also claimed to have left Ola behind and became the number two player after Uber in the overall ride-hailing space (bike, auto, and cabs). As of March 2024, Uber processed 19.3 lakh rides on a daily basis while Rapido did 16.5 lakh rides a day followed by Ola which did 13 lakh rides, as per Rapido’s internal documents reviewed by Entrackr. While Rapido is yet to disclose FY24 numbers, the firm’s operating revenue surged 3X to Rs 443 crore during FY23. The steep growth in scale also caused a 54% spike in losses, which stood at Rs 675 crore in FY23.

Ola Electric’s two wheeler market share rises to 30% in October

EntrackrEntrackr · 8m ago
Ola Electric’s two wheeler market share rises to 30% in October
Medial

After consecutive declines in market share, electric two-wheeler manufacturer Ola Electric regained traction in October with sales increasing during the festive period. According to Vahan data, Ola Electric sold 41,605 units in October, up from approximately 24,726 units in September—a 68% month-on-month rise. Subsequently, the Bengaluru-based company's market share also climbed to 30% in October, compared to 27% the previous month. However, this figure remains lower than its earlier market shares, which stood at 32% in August, 39% in July, and 49% in June. In October 2024, the Indian electric two-wheeler market recorded total sales of 139,031 units. Ola Electric led the market with 29,890 units sold, followed by TVS Motors with 28,188 units, Bajaj Auto with 15,984 units, Ather Energy with 7,309 units, and Hero MotoCorp with 7,137 units. Ola Electric has been under significant scrutiny recently. Earlier this month, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to the company for alleged violations related to consumer rights, misleading advertising, and unfair trade practices. Ola Electric has since addressed almost all after-sales complaints filed with the CCPA, according to a recent clarification. However, the Department of Consumer Affairs is reportedly investigating to confirm these resolutions. Customer complaints and a social media exchange between Ola’s CEO, Bhavish Aggarwal, and comedian Kunal Kamra have kept the company in the public eye. Financially, Ola Electric’s Q1 FY25 results show a modest 2.8% revenue increase, reaching Rs 1,644 crore, compared to Rs 1,598 crore in Q4 FY24, along with a 16.6% reduction in losses to Rs 347 crore. The company’s stock, however, is currently trading at Rs 80, nearly 50% below its peak of Rs 157.53 in mid-August, as the market awaits the Q2 results.

Exclusive: Decoding Ather’s unicorn round, Q1 FY25 numbers

EntrackrEntrackr · 10m ago
Exclusive: Decoding Ather’s unicorn round, Q1 FY25 numbers
Medial

Electric scooter manufacturer Ather Energy has entered into a coveted unicorn club with $71 million in funding from existing investor National Investment and Infrastructure Fund last month. Entrackr has gone through its regulatory filings to decode round break up, shareholding pattern, and current valuation. The board at Ather Energy has passed a special resolution to issue 1,65,28,925 Series G compulsory cumulative preference shares at an issue price of Rs 363 each to raise Rs 600 crore or $72 million, its regulatory filing accessed from RoC shows. According to the data intelligence platform TheKredible, Hero MotoCorp remains the largest external stakeholder with 38.11% after this round, followed by Caladium Investment which holds 16.3%. NIIF, Tiger Global, and Zerodha brothers are other notable investors in Ather Energy. See TheKredible for the complete shareholding. The electric two-wheeler manufacturer was valued at $1.25 billion post-allotment, as per Fintrackr’s estimates. Ather posted Rs 339 crore of revenue during the first quarter of the ongoing fiscal year with a net loss of Rs 183 crore in the same period, according to its internal document seen by Entrackr. In FY24, the firm reported a modest decline in its revenue which stood at Rs 1754 crore. Ather’s rival Ola Electric, which went public last month, posted Rs 1,644 crore in revenue during the first quarter of the ongoing fiscal year, marking its net loss down by 17% to Rs 347 crore. According to Ather, its market share in the electric two-wheeler segment was 9% in the first quarter of FY25, down from 11% in FY24. Meanwhile, Ola Electric’s market share increased to 42% in Q1 FY25, and TVS Electric secured the second position with a 19% share during the same period. Notably, Ola Electric’s market share declined in the first two months of Q2 FY25 (July and August).

Ola Electric’s 2W market share declines to 24.5% in November

EntrackrEntrackr · 7m ago
Ola Electric’s 2W market share declines to 24.5% in November
Medial

India's electric two-wheeler market recorded a 29% year-on-year growth in November, with total sales exceeding 118,000 units. However, on a month-on-month basis, the segment registered a nearly 15% decline compared to October, according to Vahan data. Ola Electric retained its position as the market leader with 29,191 units sold, which accounted for 24.54% of the EV two-wheeler market. The Bhavish Aggarwal-led company’s market share has seen fluctuations over the past six months. In October, its market share rose to 30% from 27% in September. However, this remains lower than its earlier shares, which were 32% in August, 39% in July, and a peak of 49% in June. TVS Motor and Bajaj Auto remained in close competition in November with sales of 28,200 and 27,400 units, respectively. The two companies also closed the gap with Ola Electric, capturing 23% and 22% of the market share, respectively. Ola Electric’s arch rival Ather Energy secured the fourth position with 15,800 units, while Hero MotoCorp's electric division recorded 3,300 units. Ather, which is also on the verge of listing on the stock exchange, controls 11% share in EV two wheelers space. Similar to its performance in the EV two-wheeler market, Ola Electric’s share price has also seen fluctuations in recent months. In November, its shares were trading at Rs 72.72, nearly 54% lower than their peak of Rs 157.53 in mid-August. However, last week, the stock surged by nearly 30% following the announcement of a new scooter range. This new range, designed primarily for commercial use in commerce and deliveries, is expected to boost the company’s sales in the coming months. In Q2, Ola Electric recorded a 26% decline in its operating revenue to Rs 1,214 crore when compared to Rs 1,644 crore in Q1 FY25. However, the firm registered 39% year-on-year increase in revenue from Rs 873 crore in Q2 FY24. The company posted a net loss of Rs 495 crore during the September quarter.

Ola Electric’s revenue declines 26% Q-o-Q to Rs 1,214 Cr, losses up 43%

EntrackrEntrackr · 8m ago
Ola Electric’s revenue declines 26% Q-o-Q to Rs 1,214 Cr, losses up 43%
Medial

Electric two-wheeler manufacturer Ola Electric recorded a 26% decline in its operating revenue to Rs 1, 214 crore in Q2 FY25 when compared to Rs 1,644 crore in Q1 FY25. However, the firm registered 39% year-on-year increase in revenue from Rs 873 crore in Q2 FY24. In a shareholders letter, the company attributed the year-on-year growth to a 73.6% rise in deliveries, which reached 98,619 units during Q2 FY25. Revenue from its automotive segment stood at Rs 1,215 crore, while the cell segment contributed Rs 1 crore. The firm also registered Rs 100 crore from other income which brought its total income to Rs 1,314 crore in Q2 FY25. Cost of materials was the largest burn for the Bhavish Aggarwal-led firm which jumped 46.6% to Rs 1,072 crore from Rs 731 crore in Q2 FY24. On a quarterly basis, the cost declined by 18% from Rs 1,311 crore in Q1 FY25. During Q2 FY25, employee benefits expenses stood at Rs 139 crore while other expenses, including operational and administrative costs, contributed Rs 465 crore. The firm’s total expenses for Q2 FY25 stood at Rs 1,593 crore, a 21.8% surge from Rs 1,308 crore in Q2 FY24. When compared on a sequential basis, the total expenses decreased by 13.8% from Rs 1,849 crore in Q1 FY25. Overall, the company posted a net loss of Rs 495 crore, a 42.65% increase from Rs 347 crore in the previous quarter (Q1 FY25). The losses were down by 5.5% year-on-year from Rs 524 crore in Q2 FY24. Among the venture funded companies, Ola Electric’s closest competitor Ather posted Rs 339 crore of revenue with a net loss of Rs 183 crore in Q1 FY25. Its Q2 results are yet to be announced. The Tarun Mehta-led firm also filed its draft IPO papers in September. After consecutive declines in market share, Ola Electric regained traction in October, with sales increasing during the festive period. The company sold 41,605 units in October, which helped its market share climb to 30% in the last month from 27% in September. However, this figure remains lower than its earlier market shares, which were 32% in August, 39% in July, and 49% in June. At the closure of stock exchange on November 8, Ola Electric’s shares were trading at Rs 72.72, nearly 54% below its peak of Rs 157.53 in mid-August.

Ola Electric’s CBO Ankush Aggarwal joins Ola Financial Services as CEO

EntrackrEntrackr · 1y ago
Ola Electric’s CBO Ankush Aggarwal joins Ola Financial Services as CEO
Medial

ANI Technologies, the parent company of ride hailing company Ola, has appointed Ankush Aggarwal as the chief executive officer of Ola Financial Services. His appointment comes on the backdrop of resignation of Hemant Bakshi as CEO of the ride hailing business. Bakshi was leading the mobility business along with a focus on key businesses such as financial services, logistics, and e-commerce. As per an ET report, Ankush Aggarwal will be a part of the senior leadership of Ola Cabs. In March 2022, Ankush Aggarwal (brother of Ola’s founder Bhavish Aggarwal) sold his startup Avail Finance to ANI Technologies for about $50 million in a share swap deal. After the deal, he joined Ola Electric, a separate company founded by Bhavish Aggawral, as the chief business officer (CBO). While Ola is yet to name the new chief executive of the ride hailing business, Bhavish Aggarwal will look after the day-to-day operations of the company. Entrackr has reached out to Ola for comment. Earlier this year, Ola announced that it had turned EBITDA profitable in FY23. During the period, its revenue jumped 42% to Rs 2,799 crore as compared to Rs 1,970 crore in FY22. The firm managed to cut down its losses by nearly 50% to Rs 772 crore during FY23 against Rs 1,522 crore in the previous year. Also Read: Startups rope in new CEOs amid cash crunch, layoffs, profitability and IPO plans Ola Money, which is operated by Ola Financial Services, recorded Rs 85.5 crore revenue with a loss of Rs 54.6 crore while the cab leasing firm Ola Fleet Technologies’ revenue stood at Rs 189.9 crore with Rs 387.6 crore loss in FY23. Last month, Ola announced that it is rolling back its services from international markets such as the UK, Australia and New Zealand. ​​The move is likely due to its shift in attention towards launching an initial public offering. As per media reports, Ola is gearing up for the IPO and has finanlised book running lead managers for going public.

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