By Inc42 Media

SUMMARY

The startup’s board has approved the issuance of 10,000 NCDs with face value of INR 1 Lakh each to Alteria Capital

Earlier this year, Ola Electric also raised INR 410 Cr in debt from EvolutionDebt Capital.

The two-wheeler EV manufacturer received the go ahead from SEBI today for its INR 5,500+ Cr IPO

Electric vehicle (EV) manufacturer Ola Electric is raising a debt of INR 100 Cr (about $12 Mn) from venture debt fund Alteria Capital.

As per the startup’s regulatory filings with the Registrar of Companies, its board approved the issuance of 10,000 non-convertible debentures (NCDs) with face value of INR 1 Lakh each to Alteria Capital. While 6,000 NCDs will be allotted to Alterial Capital India Fund II, the remaining will be issued to Alteria Capital India Fund III. 

“The company intends to raise funds through (an) issue of 6,000… non convertible debentures… having face value of INR 1,00,000/- each to Alteria Capital India Fund II and 4,000 NCDs… having face value of INR 1,00,000/- each to Alteria Capital Fund III… aggregating up to INR 100,00,00,000/-..,” the filing said. 

There is no clarity on how the EV startup plans to use the capital. The development was first reported by Entrackr. 

Earlier this year, Ola Electric also raised INR 410 Cr in debt from EvolutionX Debt Capital. Last year, it closed a $384 Mn funding round, which was a mix of debt and equity. 

Till date, it has raised a total funding of over $1.4 Bn. 

Meanwhile, Ola Electric received the go ahead from the Securities and Exchange Board of India (SEBI) for its much-awaited initial public offering (IPO) today. 

As per its DRHP, the startup’s IPO comprises a fresh issue of shares worth INR 5,500 Cr and an offer for sale (OFS) component of up to 9.51 Cr shares. 

Ola Electric has been clocking the highest number of electric two-wheeler registrations for the last many months. However, it continues to be a loss-making entity. 

Its net loss jumped 88% year-on-year (YoY) to INR 1,471.6 Cr in the fiscal year 2022-23 (FY23). Sales soared more than 7X to INR 2,630 Cr in FY23 from INR 373.4 Cr in the previous year. 

The startup’s loss stood at INR 267.1 Cr in the first quarter (Q1) of FY24 on an operating revenue of INR 1,242.7 Cr.

As it gears up for its IPO, Ola Electric has been streamlining its operations. As part of this, the EV major was reportedly contemplating downsizing its workforce by 400-500 employees to curb cash burn and trim loss.

Ola Electric competes with Ather Energy, Bajaj, Hero, and TVS in the two-wheeler EV space. 

Source: Inc42 Media