Ola Electric announced on Monday that it has inked a $100 million loan deal with Bank of Baroda. According to the firm, this is the largest long-term debt financing agreement in the Indian electric vehicle market. “This US$100 million 10-year debt will be used to fund and close Phase 1 of the Ola Futurefactory, Ola’s global production base for its electric vehicles.“Today’s agreement between Ola and Bank of Baroda for long-term debt financing demonstrates institutional lenders’ trust in our intentions to create the world’s largest two-wheeler manufacturing in record time. We are committed to expediting the transition to sustainable mobility and manufacturing made-in-India electric vehicles for the rest of the world, and we are delighted that Bank of Baroda has joined us on this journey,” says Sai.
“The government has implemented a number of initiatives to encourage make-in-India and position India as a global EV leader. Ola is leading from the front, and we’re thrilled to be working with them on their electric vehicle company. “We are happy to be part with the Ola Futurefactory, which will put India on the global EV map,” said Sanjiv Chadha, managing director and chief executive, Bank of Baroda. On a 500-acre location in Tamil Nadu’s Krishnagiri district, Ola has begun building of the world’s largest two-wheeler mega-factory. By 2022, it will be fully functioning. The mega-factory, which will be spread out over 500 acres, would have a first-phase capacity of 2 million units per year, according to the business. Ola Futurefactory will be the company’s worldwide manufacturing facility.
Ola unveiled the whole design of its first electric scooter earlier this month. Bhavish Aggarwal, the CEO of Ola, tweeted a video of the scooter’s performance and said the EV “goes 0-60 faster than you can read this tweet!” Whether you’re ready or not, a revolution is on its way!” The pricing of Ola’s first scooter is likely to be approximately Rs 1 lakh. Temasek, Warburg Pincus affiliate Plum Wood Investment, and Ola founder Bhavish Aggarwal announced last week that they had invested $500 million in the ride-hailing app ahead of its projected IPO. According to the company, this was one of these funds’ largest investments in the Indian consumer internet industry. Ola continued to expand its ride-hailing service across numerous categories and geographies.
“We’ve made our ride-hailing business more strong, durable, and efficient over the previous 12 months. We are well-positioned to capitalise on the varied urban mobility needs of our clients,” Aggarwal said, citing a solid recovery from the shutdown and a shift in consumer preference away from public transportation.