Ola Electric acquires Etergo to launch e-scooters in India
Ola Electric Mobility, the EV unit spun out of ride-hailing giant Ola, has acquired Dutch electric scooter manufacturer Etergo. The deal marks a major step forward for the company, which plans to produce and launch its own line of e-scooters once the COVID-19 crisis comes to an end. Here's more about Etergo and Ola Electric's plans.
Ola recently shared a statement to announce the acquisition of Etergo and its entry into the e-scooter segment. But, it did not share the exact financials of the deal. TechCrunch's sources say that the start-up was valued at around $90 million in its last financing round, so there is a good chance that Ola Electric may have paid something around the same value.
In the six years of its existence, Etergo has raised over $23 million through German automakers and crowdfunding campaigns. The company has drawn particular attention with its unique AppScooter, the world's first two-wheeler that runs Android apps and comes with GPS, 4G support, and electrically-controlled locks. It promises a 240km range with its swappable battery and is often dubbed as the 'Tesla' of scooters.
Now, with this deal, Ola Electric will get access to Etergo's intellectual property, design and engineering capabilities. "This acquisition will further bolster Ola Electric's strong engineering and design capabilities with the Etergo team's extensive vehicle development experience with leading automotive companies like Tesla, General Motors, Ferrari, Jaguar, and BMW," Ola Electric said, adding that "Etergo's team will continue to be based out of Amsterdam."
Ola Electric said it is planning to manufacture and launch e-scooters in India next year, but some reports mentioned that the company is internally trying to achieve that this year itself. The company is already said to be running pilots to deploy electric two/three-wheelers across Bengaluru, Nagpur, and Gurugram and is also working with Indian power distribution firms to set up a charging ecosystem.
"The future of mobility is electric, and the post-COVID-19 world presents an opportunity for us to accelerate the adoption of electric mobility globally. With electric, digitally connected capabilities, two-wheelers will further emerge as the most preferred urban mobility paradigm around the world."