Ola Electric, India’s largest electric scooter manufacturer, recorded an operating loss of USD 136 million on revenue of USD 335 million in the previous fiscal year. SoftBank-backed business is planning for an IPO worth up to USD 700 million.
The loss exceeds the company’s publicly declared revenue target of USD 500 million. Ola Electric’s sales also fell short of projections, with the business selling approximately 21,400 electric scooters in March, the fiscal year’s final month.
A variety of issues are being blamed for the company’s losses, including growing raw material costs and supply chain interruptions. Ola Electric is also facing increased competition from other Indian electric scooter manufacturers.
Despite the losses, Ola Electric is upbeat about its prospects. In the following months, the company intends to increase its production capacity and launch new items. Ola Electric also intends to enter overseas markets.
About Ola Electric
Ola Electric is a Bengaluru, Karnataka-based electric two-wheeler manufacturer. It is India’s largest electric two-wheeler manufacturer, with a market capitalization of over $6 billion as of May 2023.
Bhavish Aggarwal, the co-founder of Ola Cabs, launched the company in 2017. The Ola S1, the company’s first product, was released in September 2021. The S1 is a high-speed electric scooter with a 141-kilometer range.
Ola Electric released the S1 Pro, a more powerful and premium version of the S1, in March 2022. The S1 Pro has a 181-kilometer range and a top speed of 116 kilometres per hour. Ola Electric has had a lot of success in the Indian market.
Since its inception, the company has sold over 500,000 electric scooters in India. Ola Electric intends to enter foreign markets such as Europe and Latin America. SoftBank, one of the world’s top venture capital organisations, has invested in the startup. SoftBank has made a $2 billion investment in Ola Electric.