Ola Electric on Monday said it has raised $100 million in long-term debt from the Bank of Baroda for “funding and financial closure” of the first phase of its electric two-wheeler factory in Tamil Nadu. The factory that is coming up on a 500-acre site in the Southern state is eyeing to produce 10 million vehicles annually at full capacity. The company claims that it will be the world’s largest two-wheeler factory. In December last year, Ola had announced it will be investing Rs 2,400 crore for setting up the first phase of the factory. The project is nearing completion following which production trials of the Ola scooter will commence.
The factory will serve as the firm’s global manufacturing hub for its range of electric-powered scooters and two-wheelers across India and international markets including Europe, the UK and Latin America. “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. 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,” said Bhavish Aggarwal, chairman and group CEO, Ola.
Ola Electric, which operates as a separate entity, turned unicorn in 2019 after SoftBank infused about $250 million into the firm. It also has the backing of other marquee investors like Temasek and Tiger Global. Last week, Ola’s core ride-hailing unit announced a $500 million investment led by Temasek and Plum Wood Investment, an affiliate of Warburg Pincus as part of its pre-IPO financing round.
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