Ola Electric said on Monday that it had received $200 million in a fresh fundraising round, even though the Indian ride-hailing giant’s spin-out has struggled to deliver its first electric scooter to consumers and that doubts have been raised about the company’s work culture.
One of those who contributed to the new round was Tekne Private Ventures. Others included Alpine Opportunity Fund and Edelweiss. Ola Electric said the latest round valued the company at $5 billion, increasing its previous valuation of $3 billion in September 2017.
According to a release, Ola Electric co-founder and CEO Bhavish Aggarwal expressed gratitude to investors for their support. They expressed interest in working with them to bring the electric vehicle revolution from India to the globe. He said that the company is expanding into other sectors, including automobiles.
Ola Electric, which has received funding from investors such as Tiger Global and Alpha Wave Global, announced the launch of its first electric scooter, the Ola S1, earlier this year. The battery-powered scooter, which costs around $1,350, has a range of 121 kilometers (75 miles) on a single charge and costs approximately $1,350.
For the most part, this is a hypothetical/unproven promise since the firm has repeatedly postponed the arrival of the electric scooter. Moreover, just a tiny percentage of the consumer base pre-ordered the car has gotten it.
Meanwhile, Bounce, a fellow Bengaluru-based firm, has introduced its own electric scooter, which many observers believe would be more potent than Ola’s current offering.
Two-wheelers account for more than three-fourths of all new automobiles sold each year in India. As a result of the efforts of both startups and big car manufacturers and attractive government incentives in recent years, India’s transition to electric vehicles is moving in the right way. Last week, analysts at UBS published a paper in which they predicted that electric vehicles would power 37 percent of all two-wheeled vehicles in India by the end of the decade.
However, for that prediction to come true, various circumstances must go together correctly.
One of the reasons might be the work atmosphere at Ola, which is one of India’s top IT companies. Also, in recent months, top executives from Ola and Ola Electric have left due to what Indian media source Morning Context described as a hostile workplace atmosphere and a suspicious chief executive. Aggarwal is also a co-founder and chief executive of Ola, which recently secured funding at a valuation of $7.3 billion and is valued at $1 billion.