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Ola Electric Raises $50 Million in Debt Funding as It Prepares for IPO

Ola Electric raises $50 million in debt funding from EvolutionX Debt Capital as it prepares for its upcoming IPO, with plans to launch an electric autorickshaw and participation from major investors.

Ola Electric, the electric vehicle arm of the Indian ride-hailing giant Ola, has successfully raised INR 410 Crore (approximately $50 million) in debt funding from EvolutionX Debt Capital. The funding was secured through the issuance of 41,000 non-convertible debentures (NCDs), each priced at INR 1 Lakh, according to the company's filings with the Registrar of Companies (RoC).

This latest round of funding comes as Ola Electric gears up for its highly anticipated initial public offering (IPO). In October of the previous year, the company had raised INR 3,200 Crore in a combination of equity and debt financing, with notable participants including Temasek, SBI, and other investors. To date, Ola Electric has amassed approximately $1 billion in funding through equity and debt, as reported by Tracxn.

In recent developments, Ola Electric announced its plans to launch an electric autorickshaw, potentially named Raahi, which will be aimed directly at consumers. This move signifies the company's ongoing commitment to expanding its product portfolio in the electric vehicle market.

EvolutionX, the entity behind the recent debt funding, has a history of investing in prominent Indian startups such as Udaan, Mensa Brands, PharmEasy, and LendingKart. EvolutionX is a joint venture established by DBS and Temasek.

In preparation for its IPO, Ola Electric filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) in December. The proposed IPO is expected to raise INR 7,250 Crore, with a fresh issue component of INR 5,500 Crore. Additionally, the IPO will include an offer-for-sale (OFS) component of INR 1,750 Crore, amounting to a total public issue of up to 9.5.1 Cr shares.

Key figures such as co-founder and CEO Bhavish Aggarwal, along with major investors like Softbank, Temasek, Tiger Global, Alpha Wave, Tekne Capital, and Matrix Partners, are set to participate in the OFS component of the IPO.

As Ola Electric continues its journey towards going public, this recent funding round bolsters its financial position and underscores the growing investor confidence in the company's potential in the electric vehicle industry.