Indian electric vehicle startup Ola Electric, backed by SoftBank, saw its shares surge by 20% on its market debut on Friday, boosting its valuation to approximately $4.8 billion. The company priced its shares at 76 rupees (91 cents) and raised over $730 million through its initial public offering (IPO) in Mumbai, marking the largest listing in India this year. By mid-afternoon, shares were trading at around 91.20 rupees.
The strong debut reflects investor confidence in Ola Electric’s potential as a major player in India’s growing electric vehicle market, especially as government support for the industry increases. Ola Electric, known for its electric scooters, launched its first product just 2½ years ago. With two-wheelers dominating transportation in India, electric two-wheelers are expected to account for 60% to 70% of all new scooter sales in the country by 2030, according to McKinsey & Co.
Founded by Bhavish Aggarwal, who also co-founded Ola Cabs, the startup is positioning itself as a fully integrated company, handling everything from design to manufacturing and batteries, similar to Tesla. The company plans to use the IPO proceeds to reduce debt, enhance research and development, and expand its gigafactory battery plant. Despite significant revenue growth, Ola Electric has yet to turn a profit, with losses continuing to widen. The company currently has no plans to expand into car production but is preparing to launch its first electric motorcycle in the latter half of 2025.
