Ola Electric to launch 'Raahi' e-rickshaw this month
What's the story
Bengaluru-based EV maker Ola Electric is preparing to unveil a new-age electric rickshaw, called Raahi, as part of its broader strategy to enter the commercial segment. The e-autorickshaw has been under development for a few years. It is expected to compete with established players like Mahindra's Treo, Piaggio's Ape e-city, and Bajaj RE in the electric three-wheeler segment.
Ola's strategy
Ola Electric's market strategy and IPO details
Ola Electric is set to make several announcements, including details about its gigafactory, in the months leading up to the Initial Public Offer (IPO). The company has also been strengthening its position in the two-wheeler EV market, where it currently leads by a large margin. In addition to extending battery warranties for all scooters to eight years, Ola plans to set up 10,000 fast-charging stations by the end of next quarter and expand its service center network by April.
Gigafactory and IPO funding
Ola Electric's gigafactory and IPO funding allocation
In February, the company's founder and CEO, Bhavish Aggarwal, confirmed that Ola Electric is planning to open its gigafactory. This facility will manufacture battery cells that will be used in Ola's own EVs. The move is part of the company's broader strategy to strengthen its position in the electric two-wheeler market ahead of its IPO. From IPO proceeds, the EV maker plans to allocate Rs. 1,226 crore for the gigafactory.
Ola's market share
Ola Electric's market share and financial performance
As of February, Ola Electric has around 41% market share in the e-scooter segment, selling 33,722 units. Its primary competitors, TVS Motor Company, Bajaj Auto, and Ather Energy currently hold about 17.7%, 14.2%, and 11% of the market, respectively. In terms of financial performance, Ola Electric has reported revenue from operations of Rs. 2,631 crore in the fiscal year, with a loss of Rs. 1,472 crore.
Information
Ola Electric's IPO and future prospects
Ola Electric filed a Draft Red Herring Prospectus (DRHP) in December last year, aiming to raise up to Rs. 5,500 crore through a fresh issue. The company also plans an offer-for-sale of 95.2 million shares by existing investors.