Ola Electric, which spun out of Ola a few years back, has raised a fresh $200 million in funding led by Japanese tech investment major, Softbank, with its valuation jumping to $3 billion.
The announcement comes after Ola's remarkable sales of its maiden Ola Electric two-wheelers earlier this month when the company claimed of selling 4 scooters per second during the first purchase window. The company claims that it sold two-wheelers worth $150 million during the sales event.
This also marks Softbank's second investment in Ola's EV venture after leading a $250 million funding round at a $1 billion valuation in 2019. From leasing electric vehicles to setting up one of the world's biggest EV factory in Bengaluru outskirts, Ola's founder and CEO Bhavish Aggarwal has maintained the company will continue to make huge investments in setting up the EV infrastructure across the country. Besides Softbank, Falcon Edge capital and other existent investors also participated in the round.
The three-year firm has so far raised $600 million across 7 funding rounds, with global investors doubling down on the future of electric mobility in a huge market like India.
Ola said it will accelerate development of other vehicle platforms, including electric motorbike, mass market scooter and its electric car. "Today's announcement will further strengthen Ola's "Mission Electric" - which urges the industry and consumers to commit to electric and ensure that no petrol two-wheelers should be sold in India after 2025," the company said in a statement.
"We're proud to lead the EV revolution from India to the world. India has the talent and the capability to build technologies of the future for the industries of the future for the entire world. I thank our existing investors and welcome new ones to Ola. Together, we will bring mobility to a billion and sustainability to the future," Bhavish Aggarwal said.
Ola Electric's two-wheeler factory has been built in a record six months time and has completed phase 1 construction, undergoing production trials. Ola Futurefactory is also the world's largest factory that is entirely run by women. At full scale, it will have over 10,000 women employed, the company said.
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