Six months after concluding $300 million investment in Ola, automotive majors Hyundai and Kia Motors are finalising an agreement to acquire a stake in Ola Electric Mobility.
Ola had already revealed that the strategic investments by Hyundai and Kia would help it to develop fleet and mobility solutions, electric vehicles and infrastructure.
Apart from acquiring stake in Ola’s parent ANI Technologies, the automotive majors will also receive a certain minority equity stake in the electric mobility arm.
According to a filing by Competition Commission of India, the deal will be done as an interconnected transaction to the proposed ANI investment.
The details of the transaction could not be ascertained.
For the unaware, even the minority stake in Ola Electric, will be valued in a million dollars. Two months ago, it became a Unicorn following the investment by Softbank.
Besides, Ola Electric has on-boarded some prominent institutional investors such as Tiger Global and Matrix Partners and individual investor Ratan Tata.
Till date, the company has raised over $300 million, and it is in talks to raise fresh funds from several investors including chairman of Hero MotoCorp, Pawan Munjal.
The development comes on the heels of Hyundai’s announcement to begin supplies of ‘affordable’ and ‘mass market’ range of electric vehicles to Ola from 2022-23.
Of late, Ola Electric had restructured the team to solely focus on electric and roll out the first set of EVs and the associated infrastructure within the set deadline.
The ride-hailing firm has also set up an Advanced Technology Center in the USA to find innovative electric mobility solutions. Led by Anand Shah, Ola Electric manufactures and runs e-vehicles with recharging solutions.