Softbank has infused $250 Million into OLA Electric, a startup funded by Bhavish Aggarwal. With this latest fundraiser going through, OLA Electric has joined the unicorn club of companies and startups which are valued more than $1 billion.
This list of unicorn companies includes big names such as Flipkart, Zomato, PayTM. The parent company of OLA Electric, OLA is a also a unicorn status company.
This infusion of funds will help OLA Electric Mobility (OEM), the vehicular arm of OLA to achieve its target of 1 million EVs by the end of 2021.
SoftBank is also the largest investor in the OLA. Ratan Tata also made an investment into OEM in the month of May. The amount was however undisclosed as part of the series A funding. Tiger Global and Matrix India also raised ₹400 crores for OEM in March this year also as a part of Series A funding. The Softbank funding comes as a part of Series B fundraising by Ola Electric.
Incorporated in February 2017, OLA Electric was a complete and wholly owned company by ANI Technologies until Tiger Global and Matrix made investments in March, 2019.
Indian government is also pushing towards the use of electric vehicles as a measure to curb pollution and save on fuel and its import bills. According to experts, electric vehicles are about to play a more than significant role in coming couple of years in the Indian vehicle market. This investment by Softbank is being seen as a major step to take a head start in a very huge upcoming market in India.
OLA Electric is currently engaged in testing several pilot projects. These projects include vehicles in two, three and four wheeler segments. These projects also involve finding charging solutions and battery swapping stations.
OLA is currently competing against Uber, another biggest ride-hailing app. OLA in partnership with Hyundai and Kia will be developing unique fleet of EVs with different mobility solutions.
OEM is also targeting to deploy around 10,000 EVs by the end of this year. This will be a small part of their elaborate plan of introducing one million EVs by the end of 2021.
Indian car market is expected to grow to an estimate of $707 million by the end of 2025. EVs are surely the future of automobile industry and hence almost every one wants to keep a slice from the pie.