Ola Electric Secures INR 3,200 Crore in Funding for EV Expansion and Lithium-ion Cell Manufacturing Facility

By Editor


Ola Electric, a pioneering name in the Indian electric vehicle (EV) sector, has successfully concluded a significant funding round, amassing a staggering INR 3,200 crore. The funds have been secured from a combination of equity investors led by Temasek and project debt from the State Bank of India.

This fresh injection of capital is earmarked for the ambitious expansion of Ola’s electric vehicle business. Moreover, it will play a pivotal role in facilitating the establishment of India’s first-ever lithium-ion cell manufacturing facility, which will be located in Krishnagiri, Tamil Nadu.

Ola Electric is charting a visionary course for the Indian EV landscape, with plans to launch a series of electric motorcycles. These motorcycles are set to be followed by electric cars, and the company is also committed to fast-tracking the construction of a massive Gigafactory. This multifaceted approach underlines Ola Electric’s commitment to promoting sustainable and eco-friendly transportation solutions.

Bhavish Aggarwal, Founder and CEO of Ola Electric, expressed his gratitude towards the company’s investors and lenders. He noted, “We are committed towards developing core technologies in EVs and cells and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility. Our investors and lenders have shown deep faith in Ola’s vision, and we thank them for the constant support and encouragement.”

In a significant recognition of Ola Electric’s contribution to the EV sector, the Indian government recently selected the company as the sole Indian EV enterprise to benefit from its ambitious cell PLI (Production-Linked Incentive) scheme. This recognition grants Ola Electric a maximum capacity of 20 GWh, positioning the company to play a pivotal role in India’s EV manufacturing landscape.

The forthcoming lithium-ion cell manufacturing facility is slated to have an initial capacity of 5 GWh in its first phase, with plans to further scale up this capacity to a remarkable 100 GWh at full production potential. This facility is expected to become a crucial contributor to the domestic manufacturing of essential EV components, reducing the country’s dependence on imports.

Ola Electric has been rapidly expanding its EV portfolio, offering a diverse range of electric scooters. These include the S1 Pro, S1 Air, S1X+, S1X (3kWh), and S1X (2kWh), all built on an advanced Gen-2 platform.

In addition to their scooter offerings, Ola Electric has introduced a lineup of electric motorcycles, scheduled for launch by the end of the coming year. These motorcycles are expected to further strengthen Ola’s position as a pioneering force in India’s electric mobility revolution.

With a robust infusion of funds and a clear vision for the future, Ola Electric is poised to lead the charge in India’s transition to sustainable and eco-friendly transportation solutions.

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