Ola Electric Raises Rs 100 Crore in Debt Financing Ahead of IPO
Summary
IPO-bound Ola Electric has successfully raised Rs 100 crore (approximately $12 million) in debt from Alteria Capital. This marks the second round of debt financing for the Bengaluru-based electric vehicle manufacturer in 2024.The board at Ola Electric passed a special resolution to issue 10,000 non-convertible debentures at an issue price of Rs 1,00,000 each, securing a total of Rs 100 crore. Regulatory filings accessed from the Registrar of Companies (RoC) confirm this development.This funding round follows closely on the heels of a $50 million debt financing obtained from EvolutionX two months prior. The debentures carry an interest rate of 13.8% per annum, with an additional 2% interest per month applied in case of default on interest payments.According to startup data intelligence platform TheKredible, Ola Electric, led by Bhavish Aggarwal, has raised over $1 billion through both equity and debt financing, achieving a valuation of $5.4 billion during the last round.In December 2023, Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aiming to raise Rs 5,500 crore ($660 million). Other significant stakeholders include Tiger Global, Indus Trust, and Alpha Wave, owning 6.03%, 3.85%, and 3.49% respectively.Ola Electric has demonstrated impressive growth, with its revenue surging seven-fold to Rs 2,631 crore in FY23, up from Rs 373 crore in FY22.