Ola Electric raises USD 100 million long-term debt: 450X, iQube rivalling electric scooter launch soon

Ola Electric's upcoming facility will have a full capacity of 10 million vehicles annually and the same will be the world’s largest two-wheeler factory. 

By:Updated: Jul 12, 2021 2:15 PM

 

Ola Electric and Bank of Baroda have recently signed the largest long-term debt financing agreement in the Indian EV industry. The company’s press release says that this 10-year debt of USD 100 million is towards the funding and financial closure of the first phase of Ola Electric’s Futurefactory that will be its global manufacturing hub for its upcoming electric two-wheelers. The company had earlier announced in December that it will be investing Rs 2,400 crore for setting up the first phase of its factory. The Ola Futurefactory is soon coming up on a 500-acre site in the state of Tamil Nadu. The facility will have a full capacity of 10 million vehicles annually and will be the world’s largest two-wheeler factory. The first phase of Ola Futurefactory is nearing completion following which the production trials of the much-awaited Ola electric scooter will begin. The soon-to-be-launched Ola electric scooter will be manufactured at the company’s Futurefactory and the same is expected to be priced around the Rs 1 lakh mark.

Watch Video | Ather 450X Electric Scooter Review:

Speaking on the latest development, Bhavish Aggarwal, Chairman & Group CEO, Ola said that the agreement for long-term debt financing between Ola Electric and Bank of Baroda signals the confidence of the institutional lenders in the company’s plans to build the world’s largest two-wheeler factory in a record time. He added that Ola Electric is committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world. He concluded his statement by saying that the company is happy that Bank of Baroda has joined it in its journey.

Speaking on similar lines, Sanjiv Chadha, Managing Director & CEO, Bank of Baroda said that the government has brought in several policies to incentivize Make-in-India and to enable India to become a global EV leader. He added that Ola is leading from the front and the bank is delighted to partner with them for their EV business. Chadha also stated that the Ola Futurefactory will put India on the global EV map and the Bank of Baroda is proud to be
associated with them.

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