Update: The headline and post has been updated after getting an official statement from Ola that it has raised Rs 400 crore instead of Rs 292 crore.
Local cab hailing giant Ola has raised another funding round but this time for its electric mobility unit called Ola Electric Mobility.
The subsidiary of ANI technologies has picked up Rs 400 crore in its first round of external funding led by early backers of Ola – Tiger Global, Matrix Partners, and Sarin Family India LLC.
According to RoC filing with MCA, Ola Electric Mobility has issued and allotted 1993 Series A compulsory convertible preference shares of face value of Rs 10 each of the company, at a price of Rs 14,61,523 to the aforementioned investors, Business Standard reported quoting paper.vc.
The funding will boost founder Bhavish Aggarwal’s plan to bring 1 million EV’s on Indian road by 2021. Last year, it hinted to put 10,000 electric vehicles, which will primarily be electric rickshaws, on the road in the next 12 months.
Ola was reportedly in discussion with several state governments including Karnataka, Telangana, and Gujarat to create an appropriate policy environment for electric three-wheelers.
Besides, it has also been looking for potential vendors across the globe who could supply the components especially lithium battery to roll out a commercial model.
The interest of Ola’s existing investors in the company’s EV strategy will give an edge over arch-rival Uber that is yet to announce a significant step towards sustainable mobility.
Further, the EV strategy currently headed by Anand Shah is expected to boost the company’s financial as it aims to become profitable in the next fiscal.