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Ola’s EV arm raises $100 million from Bank of Baroda
The funds are being raised as a long-term loan by Ola Electric Mobility Pvt. Ltd, the electric vehicle (EV) arm of the Bengaluru-based company.
Ola is raising $100 million from state-run Bank of Baroda (BoB) to partly finance the first phase of construction of what India’s largest ride-hailing platform claims will be the world’s largest electric two-wheeler factory.
The funds are being raised as a long-term loan by Ola Electric Mobility Pvt. Ltd, the electric vehicle (EV) arm of the Bengaluru-based company. The plant is being built in Tamil Nadu’s Krishnagiri district. The factory will have an initial capacity of 2 million electric vehicles a year.
“Today’s agreement for long-term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time,” Ola chairman and group chief executive officer Bhavish Aggarwal said. “We are committed to accelerating the transition to sustainable mobility and manufacture made-in-India EVs for the world, and we are happy that Bank of Baroda has joined us in our journey”.
Ola said last December that it will invest ₹2,400 crore in the first phase of its so-called ‘future factory’.
The fund-raising from Bank of Baroda follows Ola announcing last Friday that it has raised $500 million for its core ride-hailing business, led by Temasek Holdings Ltd and Plum Wood Investment Ltd, an affiliate of Warburg Pincus LLC, ahead of its planned public offering.
