Ola Electric Bags INR 3,200 crore Funding to Scale up EV Operations

Published On: 27 October 2023
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Ola Electric will use the funds to expand its EV business and build India's first lithium-ion cell manufacturing plant in Krishnagiri, Tamil Nadu.

Ola gains investment from Temasek and SBI

Ola Electric, an electric vehicle (EV) maker, has raised Rs 3,200 crore in funding from investors namely Temasek and the SBI. The company is in motion to employ these funds for the expansion of its EV sector and develop India's first lithium-ion cell manufacturing plant located in Krishnagiri, Tamil Nadu.

Ola Electric also plans to boost its manufacturing capacity of two-wheelers, launch electric motorbikes, and fast-track the establishment of a gigafactory. The company was selected as the only Indian EV giant to be profited from the government's cell PLI scheme, which will allow it to produce up to 20 GWh (gigawatt hours) of batteries. This scheme plays an important part in helping India achieve self-sufficiency in crucial elements of the electric vehicle (EV) value chain.

Ola Electric is constructing a manufacturing plant based on a lithium-ion cell located near its already established Futurefactory in Krishnagiri, Tamil Nadu. The facility will have an initial capacity of 5 GWh in its first phase, with plans to expand to 100 GWh at full capacity. It is expected to start operating in the starting of next year, and will facilitate the local production of cells on a massive scale, so as to bring the country a step closer to gain energy independence.

Five new scooters from Ola Electric, with prices ranging from INR 90,000 to 1.47 lakh, have been added to their lineup. Built on an advanced Gen-2 platform, these new models—named S1 Pro, S1 Air, S1X+, S1X (3kWh), and S1X (2kWh)—were unveiled last month at Ola's annual flagship event.

Furthermore, Ola Electric has earlier unveiled a number of motorcycle concepts that will go on sale by the end of the following year. These models—Roadster, Diamondhead, Adventure, and Cruiser—were created by keeping customer preferences in mind.