Ola Electric could Set Valuation at USD 4.5 billion for IPO

Ola Electric, one of the largest electric two-wheeler companies, is preparing to launch an Initial Public Offer (IPO) soon. For this, the valuation of the company can be fixed at around $4.5 billion. This valuation is about 20 percent lower than the company’s previous funding round.

Last month, markets regulator SEBI Ola Electric had given permission for an IPO of about $660 million. This could be one of the biggest IPOs in the country. In September last year, Singapore’s investment firm Temasek had invested in the company. For this, Ola Electric was valued at around $5.4 billion. Reuters’ report quoted sources as saying that the company’s valuation for the IPO may decrease. Ola Electric’s founder, Bhavish Aggarwal had set a target of six billion dollars for this.

Ola Electric’s sales in June grew by nearly 107 percent year-on-year. Last month company 36,716 units of Ola Electric’s electric scooters have been registered. The company claims that its share in this segment is around 46 percent. Ola Electric’s sales have increased by about 57 percent in the first quarter of the current financial year. The company’s sales have been more than two lakh units in the first half of this calendar year. It has become the first electric two-wheeler company to reach this figure in such a short period. Last month, the company updated its S1 X electric scooter with new features.

These features include Find My Scooter and Vacation Mode. This electric scooter does not have to be taken to the service center for software updates. Vacation mode is activated when the customer does not use the electric scooter for a long period. The company has made the S1 X available in 2 kW, 3 kW and 4 kW battery options. The certified range of its 2 kW battery variant is about 91 kilometers on a single charge. It takes 7.4 hours to charge its battery. It can accelerate from 0-40 kmph in about 4.1 seconds. Its top speed is about 85 kmph. It has three riding modes – Eco, Normal and Sports.