India’s Ola Electric raises $100m from Bank of Baroda ahead of e-scooter launch

Photo: Company website

Indian Electric Vehicle (EV) manufacturer Ola Electric on Monday announced that it has raised $100 million in debt financing from Bank of Baroda.

“This 10-year debt of $100 million is towards the funding and financial closure of phase 1 of the Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers,” the company said in a statement.

In December, Ola had announced that it will be investing Rs2,400 crore ($322 million) for setting up phase 1 of the factory. The Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu, India.

At full capacity of 10 million vehicles annually, it will be the world’s largest two-wheeler factory, the company claimed.

“Today’s agreement for long-term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time. We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world,” said Bhavish Aggarwal, Chairman & Group CEO, Ola.

The first phase of Ola Futurefactory is nearing completion, following which production trials of the Ola Scooter will commence, the company said. The Ola Scooter, which will be launched soon, will be manufactured at the Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.

In May, the company had announced the appointment of N Balachandar as chief human resources officer (CHRO) and Wayne Burgess, as the head of vehicle design for its entire product range, including scooters, bikes, cars, and more.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.