Ola chairman and CEO Bhavish Aggarwal.(HT File Photo)
Ola chairman and CEO Bhavish Aggarwal.(HT File Photo)

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.
By Madhurima Nandy, Bengaluru
PUBLISHED ON JUL 13, 2021 12:03 AM IST

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.

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