How Ola Electric Is Trying To End The ICE Age

Ola Electric is an electric two-wheeler manufacturer, considered India’s biggest one. And in October 2023, it was announced that Ola Electric was said to have raised about $385 million in a new funding round. The round was said to comprise both equity and debt investments. The round’s investors include Temasek and the State Bank of India. The primary purpose of these funds is said to be fuelling the expansion of Ola’s EV business and facilitating the establishment of India’s inaugural lithium-ion cell manufacturing facility that’s located in Tamil Nadu. Ola Electric is said to have plans for its lithium-ion cell manufacturing facility. This could make it India’s first lithium-ion cell manufacturing facility India is said to be heavily dependent on importing lithium-ion cells and batteries for its growing EV sector. By having a domestic manufacturing facility, India could, potentially, reduce its reliance on imports. This could make India more self-reliant in the production of key components for its clean energy and EV initiatives. And domestic production could lead to cost savings, as it eliminates the need for expensive imports. Ola Electric is said to have a vision to end the ICE age in automobiles. ICE Age is about the dominance of Internal Combustion Engine vehicles in the automotive industry. These vehicles are powered by traditional internal combustion engines that burn fossil fuels to create the energy needed to make the car move. While Ola Electric seems to be renowned for its electric scooters, it has also ventured into the electric motorcycle segment. This capital infusion comes on the heels of several investment tranches secured by Ola Electric in recent months. These include financial commitments from investors such as Temasek, Blue Investments, DIG Investments, Tiger Global, Tekne Private Ventures and more. Estimates by TheKredible indicate that Ola Electric’s valuation is around $5.4 billion post-allotment. Compare this to January 2022, when Ola Electric’s valuation was about $5 billion. The Tamil Nadu facility is anticipated to commence operations by early 2024 and could play a role in making India more energy-independent.