Unpacking Ola Electric’s latest funding round

Ola Electric recently announced a $200 million round of funding led by Falcon Edge and SoftBank at a valuation of $3 billion. The company, however, did not disclose details such as round split and stake acquired by new investors.

Fintrackr has extracted details such as the name of all investors who participated in the round and their stakeholding in the company through its regulatory filings. 

Ola has passed a special resolution to allot 885 Series B preference shares at an issue price of Rs 107,34,870 to raise Rs 950.03 crore from Falcon Edge’s Alpha Wave Incubation, DIG Investment, Barry S Sternlicht and then allotted 231 Series C1 preference shares to SoftBank at Rs 96,33,295 per share to raise Rs 222.53 crore. 

According to Fintrackr’s estimates, SoftBank has invested the aforementioned amount at a valuation of Rs 17,450 crore or $2.35 billion whereas other investors have put in money at a valuation of Rs 20,550 crore or $2.77 billion. 

Ola Electric has received a total of Rs 1172.6 crore or close to $160 million in two different rounds and SoftBank has invested at a lower valuation. While the company had claimed to raise $200 million in this round, the remaining money might be coming in the coming weeks.

Following the allotment of fresh shares, holdings of Ola Electric promoters stands at 37.3% in the company. New investor Falcon Edge has acquired 3.7% stake while DIG Investment and Barry S Sternlicht have acquired 0.55% and 0.46% stake respectively after this round.

Founder Bhavish Aggarwal holds around 37% stake.

According to Ola Electric, the fresh funding will help it to accelerate the development of its other vehicle platforms including electric motorbike, mass-market scooter and its electric car. 

Besides equity capital, the company had also raised $100 million debt from Bank of Baroda in August, in what was one of the largest long-term debt financing agreements in the Indian EV industry.

Ola Electric has entered a competitive two-wheeler market for electric vehicles, with Ather Energy among startups, and market leaders such as Hero Electric which has 36% market share in India’s two-wheeler EV segment.