In a strategic move that underscores its ambition in the electric vehicle (EV) arena, Ola Electric is set to introduce its first electric autorickshaw, reportedly named "Raahi." This marks a significant foray into the commercial vehicle market for the company, which is on the verge of an initial public offering (IPO). The launch, expected later this month, aims to electrify the urban mobility sector further.
A New Contender in the EV Market
Ola Electric's venture into the electric three-wheeler segment pits it against established players like Mahindra Treo, Piaggio Ape e-city, and Bajaj RE. With the price range for electric autorickshaws currently set between INR 2 Lakh and INR 3.5 Lakh, depending on the model and features, Raahi is poised to make a significant impact. This move comes at a time when the electric three-wheeler market is experiencing robust growth, with sales surpassing 580,000 units in 2023, a 66% increase from 2022, and accounting for over half of the total three-wheeler sales.
Expanding Ola's EV Portfolio
Founded by Ola Cabs co-founder Bhavish Aggarwal, Ola Electric has already made its mark with a portfolio of five scooter models. With 935 experience centres, including 414 service centres as of the end of October 2023, the company boasts a comprehensive omnichannel distribution network. The introduction of Raahi is in line with Ola's strategy to broaden its product offerings and delve deeper into the EV market.
Paving the Way for an IPO
As Ola Electric prepares for its much-anticipated IPO, the launch of the e-autorickshaw is among several key announcements expected in the near future, particularly concerning the company's gigafactory. With a draft red herring prospectus filed in December for an INR 7,250 Cr IPO, including a fresh issue of INR 5,500 Cr and an offer-for-sale (OFS) component of INR 1,750 Cr, Ola Electric is gearing up for a significant phase of growth and expansion.
Investor Enthusiasm and Market Potential
The upcoming IPO has garnered attention from major investors such as Softbank, Temasek, Tiger Global, Alpha Wave, Tekne Capital, and Matrix Partners, who are set to participate in the OFS. Moreover, a recent funding round in October raised INR 3,200 Cr, demonstrating strong investor confidence in Ola Electric's vision and strategy.
With the imminent launch of Raahi, Ola Electric is not just expanding its product lineup but also reinforcing its commitment to sustainable urban mobility solutions. As the company moves closer to its IPO, the EV market and investors alike watch with keen interest.
