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Ola Electric Receives SEBI Nod for IPO After Six Months

Ola Electric IPO
Preeti Bali / 7:46 am / June 21, 2024

After a six-month wait, Ola Electric, a leading electric scooter manufacturer, has secured approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The company initially filed its draft red herring prospectus (DRHP) in December 2023, aiming to raise Rs 5,500 crore (approximately $660 million) through the public listing.

Investor Landscape and Recent Funding

According to Ola Electric’s DRHP, Bhavish Aggarwal, the company’s founder and CEO, remains the largest shareholder with a 36.94% stake. SoftBank follows closely behind with a 21.98% ownership. Other notable investors include Tiger Global (6.03%), Indus Trust (3.85%), and Alpha Wave (3.49%).

Since filing the DRHP, Ola Electric has further bolstered its financial position by securing $62 million in debt financing across two tranches. This includes a $50 million debt infusion from EvolutionX in April, followed by another tranche earlier in June 2024 (reported exclusively by Entrackr). With this latest funding, Ola Electric’s total capital raised surpasses $1 billion across equity and debt rounds. The company’s most recent valuation stood at $5.5 billion.

Growth and Losses: A Balancing Act

Ola Electric experienced significant revenue growth in FY23, with their operational revenue surging sevenfold to Rs 2,631 crore. However, despite this impressive growth trajectory, the company’s losses also climbed by 87.76% to Rs 1,472 crore in the fiscal year ending March 2023. Notably, the company’s annual report for FY24 remains pending.

Electric Two-Wheeler Market Heats Up

Ola Electric faces competition from fellow electric two-wheeler manufacturer Ather Energy, which is also reportedly gearing up for an IPO. Recently, Ather Energy facilitated an exit for early investor Sachin Bansal, who sold his 7.5% stake to a consortium comprising Hero MotoCorp and Zerodha co-founder Nikhil Kamath.

Brighter Prospects for Startup IPOs in 2024

The current year (2024) presents a more optimistic outlook for startups seeking public listings. Following a robust year for startup IPOs in 2021 (with over 10 companies listing), the market witnessed a significant decline in 2022 (only two IPOs) and 2023 (five IPOs). However, 2024 has shown renewed momentum, with several internet companies like TBO Tech, Digit Insurance, Awfis, and Ixigo successfully completing their IPOs. Additionally, companies like FirstCry, Mobikwik, Unicommerce, and Swiggy are awaiting SEBI approval for their listings.

Beyond Tech Startups: Broadening the Public Market Landscape

The public market landscape in 2024 isn’t limited to internet startups. Entrackr’s exclusive reports revealed that logistics startup Blackbuck and online meat marketplace Zappfresh also successfully transitioned into public entities, further diversifying the offerings available to investors.

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