Ola Electric, an EV manufacturing startup plans to raise a debt of $12 million in a debt and equity  round led by VC firm Alteria Capital. The round is more likely to have participation from the  company’s new and existing investors. Ola Electric may use this funding for expansion and to  enhance its technology. 

The board at Ola Electric has approved a resolution to allot 10,000 non-convertible debentures at an  issue price of Rs 1,00,000 each to Alteria Capital and 6,000 NCDs will be offered to Alteria Capital  India Fund II while the remaining will go to Alteria Capital India Fund III. These fresh proceeds can be  used to scale up operations, meet public demand, and for general corporate purposes, however, the  company did not clarify how they plan to use this amount. This debt shows the trust of Alteria  Capital in the Ola Electric market potential and business model. The company offers two-wheeler  electric vehicles with best-in-class components and warranty to its users. 

Image source: olaelectric.com 

The firm preliminarily secured Rs 410 crore in a round led by EvolutionX debt capital and closed the  debt and equity round at 384 million USD. The company has raised a aggregate of 1.4 billion USD to  date. Securities and Exchange Board of India approved the original Public Offering for the company.  The IPO handed fresh shares worth Rs 5,000 crore with an Offer for Sale component of more than  Rs9.51 crore shares. 

Ola Electric reported a 88 percent increase in net loss on Year-on-year basis to Rs 1,471.6 crore for  the fiscal time 2023. Total sales increased by seven times to Rs 2,630 crore in FY23. The net loss for  the first quarter of FY24 stood out at Rs 267.1 crore on operating revenue of Rs 1,242.7 crore. To  recover from its net loss the startup downsized its workforce and reduced the total number of  employees. This EV startup competes with companies including Bajaj, Ather Energy, TVS, and Hero,  among others.  

Conclusion: 

Two-wheeler EV manufacturing startup, Ola Electric is planning to raise $12 million in debt in a round  led by Alteria Capital. The round is likely to have participation from new and existing investors  including VC fund firm Alteria Capital. The company may use the fund for network expansion and  scale-up to meet working capital requirements. The board at Ola Electric has approved a resolution  to lot 10,000non-convertible debentures at an issue price of Rs each to Alteria Capital and 6,000  NCDs will be offered to Alteria Capital India Fund II while the remaining will go to Alteria Capital India  Fund III. These fresh proceeds can be used to scale up operations, meet public demand, and for  general commercial purposes, however, the company didn’t clarify how they plan to use this amount.  This debt shows the trust of Alteria Capital in the Ola Electric market potential and business model. This startup competes with other two-wheelers Manufacturers including Ather Energy, TVS, hero  Motocorp, and Bajaj.