Ola Electric, the electric vehicle arm of Ola Cabs’s parent ANI Technologies Pvt. Ltd., is in the final stages of raising $200 million as a part of a fresh raise which could value the startup at over $5 billion, two individuals close to the development told Mint.
The deal is expected to be signed in the next 2 weeks with several US-based blue chip funds participating as a part of the round, the individuals said on the conditions of anonymity.
Ola Electric is looking to double its manufacturing for its Ola Scooter over the coming months, considering the customer response it has received.
“The initial response of customers towards the Ola Scooter has been giving investors the right confidence to give a boost to Ola’s valuation,” said a third individual who was aware of Ola Electric’s funding plans. Ola Electric was not available for a comment.
Last week, Ola Electric announced a $200 million round led by Falcon Edge, SoftBank and others at a $3 billion valuation.
Other investors in the company include Matrix Partners, Tiger Global Management, Ratan Tata's RNT Associates and the Pawan Munjal Family Trust. SoftBank previously invested around $248 million in Ola Electric in May 2019.
The company has said it is using the capital raised to develop other vehicle platforms including electric motorbikes, mass market scooters and its electric car.
On September 17, founder Bhavish Agarwal said that Ola Electric recorded over Rs 1100 crore worth in sales over the two-day purchase window for its new electric scooter range, Ola S1 and S1 Pro. It clocked Rs 600 crore in sales on the first day of the sale, it said at the time. The company claimed it sold four scooters every second in the first 24 hours.
The company is planning to open a second purchase window starting 1 November.
Its sister concern, the SoftBank and Tiger Global-backed ride hailing company, Ola Cabs, is also planning to raise as much as $1.5bn through an initial public offering.