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Is Etergo’s acquisition brewing trouble for Investors?
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Ola Electric had announced the acquisition of Etergo BV, an advanced electric scooter OEM. Ola Electric has also announced its entrance into the premium electric two-wheeler market, both internationally and nationally, with this acquisition. Established in 2014, Etergo has created an all-electric state-of-the-art AppScooter, which at CES 2019 and Automotive Brand Contest, Germany, among others, has received several awards around the world for its ground-breaking design and engineering. The AppScooter, first announced in 2018, uses swappable batteries with high energy density to provide a range of up to 240 km and class-leading acceleration.

Ola Electric Mobility Pvt Ltd had announced (1the acquisition of Etergo, the Amsterdam-based electric scooters company. Ola Electric aims to leverage the design and engineering expertise of Etergo with this acquisition to develop its smart electric two-wheeler for foreign and national markets, with the launch in India scheduled for 2021. Ola did not reveal the acquisition’s financial information. (2)

The most effective and cleanest solution for urban mobility is electric two-wheelers, which will become even more critical in the post-COVID world. Ola Electric aims to turn the 100 million+ worldwide two-wheeler industry, including the 20 million+ Indian two-wheeler market, into renewable energy, a digital future with European architecture, deep engineering cooperation, and India’s manufacturing and supply chain. Ola Electric (3) worked to develop an electric vehicle ecosystem to make ‘clean kilometers’ on a scale. Ola Electric is currently organizing several pilots to introduce electric vehicles and charging solutions across cities, focusing on 2 and 3 wheelers, with plans to set up complete charging and swapping networks across the country. The business aims to create a suite of electrical and intelligent urban mobility solutions for global people, both in India and worldwide.

“The future of mobility is electricity, and the post-COVID world presents an opportunity for us to accelerate the global adoption of electric mobility,”

said (4) Bhavish Aggarwal, Founder & Chairman, Ola Electric.

Compared to cars, almost twice the amount of two-wheelers are sold worldwide last year. With electric, digitally linked capabilities, two-wheelers will continue to emerge as the world’s most common urban mobility paradigm and empower every user.

We look forward to developing the best global engineering, design, and production capabilities for these products manufactured here. He also said,

“I am excited to welcome Ola Electric to Bart, Marijn, and the whole Etergo team and look forward to working closely with them to build on our vision of making electric mobility a reality on a scale.”

Etergo (5) was founded in 2015 to revolutionize intelligent transport, accelerate the global transition to sustainable mobility, and develop healthy and environmentally friendly alternatives.

AppScooter – Etergo’s venture into a new future

The AppScooter is part of the broader, laudable goal of Etergo to speed up the transition towards renewable energy. (6) The scooter is on its way to make a better list because it can also be a secret killer, despite being a brilliant commuting option for our cities. A recent Nature Magazine survey found that a substantial source of particulate matter and toxic organic compounds are the rich combustions of two-stroke scooters. They are more harmful than vans or buses in some developing cities, but it is estimated that 500 million motorized two-wheelers will be sold between now and 2030. Therefore, If Etergo could nail the zero-emission AppScooter, the skylines of Beijing, Bangkok, and Barcelona could genuinely move from smog clouds to smug clouds. (7)

 

Working and Technology of the AppScooter

To interface with the digital monitor and your phone, the AppScooter features built-in controls directly on the handlebars. The touchscreen enables Android apps to be used while protected. The AppScooter also has two built-in cameras designed to capture your journey’s video and share it quickly on social media. Still, it could also be used for dashcam purposes. The complete 65 liters storage area of AppScooter. (8)

The AppScooter is also well designed in the mechanical and electrical divisions and the fancy features. The AppScooter skips the hub motor and hires a mid-mounted motor with belt drive, unlike many other electric scooters. Depending on how fun you want your commute to be, engine choices on the scooter vary from 2 kilowatts up to 7 kilowatts. The power converts into incredible acceleration, which is just 3.3 seconds exceed 45 km/h. A tremendous urban mobility vehicle with a 7-inch touchscreen display, Bluetooth networking, and mobile device app integration (usable only when the scooter is stationary), all at a reasonable price, starting at 3400 euros. The AppScooter electric scooter allows the driver to speak securely on the phone without taking their hands off the handlebar and to connect their mobile with the Android device to the monitor through Bluetooth. (9)

 

Trouble for Ola etergo versus Investors?

The acquisition of Etergo by Ola electric on May 27th has caused many problems. First of all, Etergo had been at the capital of 90 Million. The purchase was made at a time where the sale was a loss for Etergo. Here are the basics: (10)

This what they have to say on their investors’ release page: “In the recent past, Etergo has been in talks with several investors around the globe, including Ola Electric, to secure potential funding. Other than the discussions with Ola Electric, these discussions did not lead to any offers that provided a practical opportunity to finance the company’s operational and other requirements and safeguard the company’s future. As a result, the business faced the need to protect its continuity and avenue for potential growth and financing. Given the reality as mentioned above and due to the challenges raised by the steep, funding requirements for automotive hardware and the continuing crisis of COVID-19, the opportunity to partner with Ola Electric has emerged as the best course of action to secure the future of Etergo and AppScooter, while trying to preserve the ability of the organization to implement the vision of Etergo. Thus after due consideration of the alternatives, Etergo has realized that it is in the best interest of Etergo and its workers.”

The statement means a loss will amount to each share for the dividend that is earned by the investors. Owners Bart and Marjin had to waive their consideration over the claims and sell the following shares for 0.0179986 euros per share. The agreement for the sale of Etergo to Ola Electric was authorized by all other shareholders other than the foundations in which Etergo’s crowdfunders hold an ownership interest, which is contractually bound by the foundations to co-sell on behalf of Etergo’s crowdfunders under the same terms and conditions as the other shareholders and the owners continue to remain employed with Etergo.

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My passion is Reading and writing. Basically, an optimistic introvert. Always striving to be better. Writing as a passion leads me to become stronger and focused.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Abraham George
Abraham George
My passion is Reading and writing. Basically, an optimistic introvert. Always striving to be better. Writing as a passion leads me to become stronger and focused.

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