By
Svetlana Soroka
April 18th, 2024
Ola Electric’s vision extends beyond electric scooters, as it plans to diversify its product portfolio with the launch of a motorbike by the end of 2023.
India’s electric two-wheeler manufacturer, Ola Electric Mobility Pvt. Ltd., is now preparing for an Initial Public Offering (IPO) much sooner than initially anticipated following its exceptional growth and market response.
This IPO will further solidify Ola Electric Mobility’s position as a key player in India’s Electric Vehicle (EV) market and support its ambitious goals for expansion and innovation.
A Whirlwind Pace of Growth for Ola Electric
Since it entered the market, Ola Electric has experienced a whirlwind pace of growth. The company launched its first electric scooter, the Ola S1, in late 2021, which garnered significant attention and demand from consumers across the country.
According to a recent report, Founder and CEO Bhavish Aggarwal expressed astonishment at the rapid expansion of Ola Electric in an interview, saying:
“I thought it would take me four to six years of revenue to go public. Ola Electric has grown and matured faster than I had initially planned because the market response has been very strong.”
Aggarwal’s realization of the company’s accelerated trajectory highlights the immense market demand for sustainable transportation solutions in India. Data from the Society of Manufacturers of Electric Vehicles reveals that Ola Electric has sold over 239,000 electric scooters since December 2021.
The CEO noted that the company’s early demand primarily came from first-time scooter buyers. However, as Ola Electric increased in popularity and repute, the consumer profile moved to people who were already convinced of the benefits of electric scooters.
Accordingly, Ola Electric’s market share in India’s EV sector stands at an impressive 38%. This remarkable achievement is a testament to the company’s focus on delivering high-quality, affordable electric scooters that meet the needs of Indian consumers.
Ola Electric’s success is not only reflected in its market share and sales figures but also in the confidence shown by its investors. Backed by major investors like SoftBank Group Corp (TYO: 9984) and Tiger Global Management, Ola Electric has secured significant financial support and strategic guidance since its inception.
Strategic Investments and Expansion
Ola Electric’s vision extends beyond electric scooters, as it plans to diversify its product portfolio with the launch of a motorbike by the end of 2023. Additionally, the company’s CEO announced plans to introduce a battery-powered car in 2024, signaling its foray into the four-wheeler EV market.
Aggarwal also expressed his intention to export Ola Electric scooters to Southeast Asia, Latin America, and Europe. This strategic move aims to capitalize on the growing global demand for electric scooters and expand the company’s footprint beyond India.
In the midst of Tesla Inc‘s (NASDAQ: TSLA) global popularity and its upcoming entry into the Indian market, Ola Electric is constructing a 115-acre battery factory in southern India. This factory will focus on producing lithium-ion cells primarily for Ola Electric vehicles. Aggarwal believes that designing vehicles from scratch will enable Ola Electric to sell cars on a larger scale and increase profit margins.