Ola Electric Mobility has announced the acquisition of Amsterdam-based electric scooter manufacturer, Etergo today, as it looks to launch its electric two-wheeler in India next year.
Following the acquisition, Ola Electric plans to build a sizable fleet of premium electric two-wheeler bikes, both globally and locally. According to the company, the deal will bolster the company’s engineering and design capabilities through the Etergo team’s extensive vehicle development experience with manufacturers such as General Motors, Tesla, Jaguar, and BMW.
“The future of mobility is electric, and the post COVID world presents an opportunity for us to accelerate the adoption of electric mobility globally. We look forward to building the best global capabilities in engineering, design, and manufacturing for these products to be made here in India,” wrote Bhavish Aggarwal, founder, and chairman of Ola Electric in a blog post.
Both parties haven’t disclosed the size of the deal yet, however, several media reports claimed that Etergo was valued in between $80-85 million last year. While the Etergo’s team would continue to be based out of Amsterdam, the electric vehicles will be manufactured in India.
Founded in 2014, Etergo has developed an all-electric state-of-the-art AppScooter and uses swappable high energy density batteries to deliver a range of up to 240 km. According to CrunchBase, the startup has raised 20.3 million Euros from the market to date.
The development comes two months after Ola Electric had raised $1 million from Pawan Munjal, the chairman and managing director of Hero. The company became a unicorn in July last year after it picked up $250 million in a Series B round from SoftBank Vision Fund.
Ola Electric ran several pilots to deploy electric vehicles and charging solutions across a few cities with a focus on 2 and 3 wheelers. Besides traditional scooter manufacturers, Ather Energy is a prominent electric scooter manufacturer in the country.
Meanwhile, Ola Electric two-wheeler play will likely compete with scooter rental companies such as Bounce. It’s worth noting that Ola also invested in Vogo that competes directly with B Capital-led firm.