Ola Electric Mobility is poised for an early initial public offering (IPO), surpassing its founder’s expectations. The Indian startup has experienced rapid growth since it entered the electric scooter market in late 2021.
In an interview, Founder and CEO Bhavish Aggarwal revealed that he initially anticipated it would take four to six years of revenue to go public. However, due to the strong market response and Ola Electric’s rapid growth and maturity, Aggarwal now believes the IPO will happen much sooner.
Ola Electric, backed by SoftBank Group and Tiger Global Management, has emerged as a leader in India’s electric scooter market with a 38 percent market share. Since December 2021, the company has sold over 239,000 electric scooters, primarily to customers who have already transitioned to electric vehicles.
Aggarwal has ambitious plans to expand Ola Electric’s product line, with the introduction of a motorbike by year-end and a battery-powered car by 2024. Additionally, he considers exporting scooters to Southeast Asia, Latin America, and Europe. These plans were initially delayed due to strong domestic demand.
While Ola Electric has previously considered an IPO, no concrete plans or dates have been announced. Aggarwal’s focus is on building a 115-acre battery factory in southern India, further positioning the company in the electric vehicle market.
Aggarwal believes that manufacturing EV components in-house will enable Ola Electric to scale up production, increase profit margins, and maintain control over quality and costs. This approach also sets them apart in a market where most EVs are converted from traditional gasoline models.
The road to success in the Indian electric car market is challenging, as traditional combustion-engine vehicles still dominate. Additionally, the lack of charging infrastructure and high price tags hinder the adoption of electric vehicles. In 2022, electric vehicle sales accounted for only 1.3 percent of total passenger vehicle sales in India.
Ola Electric faces competition from well-established manufacturers such as Tata Motors, Mahindra & Mahindra, and the possibility of Tesla entering the market.
Despite setbacks such as delivery delays and quality issues, Aggarwal remains optimistic about Ola Electric’s future. The company utilizes digital simulation and artificial intelligence to streamline manufacturing processes, reducing time-to-market. Aggarwal aims to build a technology-focused group of companies, utilizing computing and AI to drive innovation.
Aggarwal’s involvement in daily decision-making as part of a flat organization structure allows for swift execution and a focus on maintaining quality and safety while pursuing cost efficiency.
Furthermore, Aggarwal’s strategy to control various aspects of the EV supply chain is expected to reduce costs, enhance product performance, and enable better design.
In conclusion, Ola Electric’s founder envisions the company as a significant player in the global electric vehicle market, differentiating itself from Tesla by focusing on markets beyond the West.
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