Alteria Capital has provided debt totalling Rs 100 crore, or roughly $12 million, to Ola Electric, which is preparing for an IPO. This is the company’s second round of debt funding for 2024; it is based in Bengaluru.
According to regulatory filings obtained from the Registrar of Companies (RoC), Ola Electric’s board has approved a special resolution to issue 10,000 non-convertible dentures at an issue price of Rs 1,00,00 each in order to raise Rs 100 crore.
The $50 million debt funding from EvolutionX has been in place for two months as of this writing.
The debentures have an interest rate of 13.8% annually, with an extra 2% interest rate per month over the coupon rate in the event of an interest default, according to the filings.
The Bhavish Aggarwal-led business has raised more than $1 billion in equity and debt, and according to media, it was valued at $5.4 billion during the most recent round.
Ola Electric filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) to raise Rs 5,500 crore ($660 million) with the Security Exchange Board of India (SEBI) in December 2023. According to media reports, market regulator SEBI has also given the company the all-clear to go public.
According to Ola Electric’s DRHP, Bhavish Aggarwal holds the largest stake (36.94%) in the company, followed by Soft Bank with 21.98%. 6.03%, 3.85%, and 3.49% are owned by Tiger Global, Indus Trust, and Alpha Wave, in that order.
Ola Electric expanded quickly in FY23, as seen by the seven-fold increase in revenue to Rs 2,631 crore from Rs 373 crore in FY22. The fiscal year that ended in March 2023 saw an increase in its losses of 87.76% to Rs 1,472 crore.
The SoftBank-backed company faces competition from companies such as Hero Electric, Ather Energy, and TVS in the two-wheeler electric vehicle market. According to Vahan data, Ola Electric registered 37,191 e-scooters in May, accounting for 49% of the two-wheeler EV market.
