Ola Electric registers Rs 2,782 crore revenue in FY23, losses went down 43%

Ola Electric registers Rs 2,782 crore revenue: Ola Electric Mobility Business is getting ready to go public, and they’ve got some exciting news to share about their growth. Their total revenue has skyrocketed by 510%, reaching Rs2,782 crore in FY23, up from Rs456 crore the year before.

Ola Electric registers Rs 2,782 crore revenue (Image Credit carandbike)

This includes money from their operations and other sources. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) landscape has seen a positive shift, going from 157% in FY22 to a solid 43% in FY23. However, the exact numbers for losses haven’t been disclosed.

Ola Electric registers Rs 2,782 crore revenue

Reports suggest that Ola Electric’s net loss has doubled, hitting around Rs1,472 crore in FY23, up from Rs784.1 crore in the previous financial year. This seems to be connected to a significant increase in expenses.

Image Credit standard

They’ve also revealed an EBITDA loss of Rs1,318 crore, as their total expenses went up to Rs3,383 crore from Rs1,240 crore in FY22.

Looking forward, Ola Electric, led by Bhavish Aggarwal, envisions a path of strong growth and profitability. They’re expanding their product range, adding five scooters to their S1 portfolio through the Generation 2 platform.

Read more: Tata Power and Indian Oil have joined hands to put up 500 EV charging points all over India.

The current lineup includes the S1 Pro (2nd Generation), S1 Air, and S1 X in three different versions—S1 X+, S1 X (3kWh), and S1 X (2kWh). They’re also focusing on expanding their sales and service network.

In FY23, their Direct-to-Consumer (D2C) omnichannel distribution network has grown to include 935 experience centers and 392 service centers by October 31, 2023. More info about Ola Electric registers Rs 2,782 crore revenue in FY23, losses went down 43%.

Simultaneously, the company is strengthening its Research and Development (R&D) efforts. They’re enhancing R&D facilities in India and the UK to work on designing and developing crucial Electric Vehicle (EV) components and innovative EV products.

In August 2023, they launched the Battery Innovation Centre (BIC) in Bengaluru, aiming to advance cell and battery technology for their upcoming cell manufacturing operations at the Ola Gigafactory.

November saw Ola Electric dominating the electric scooter registrations, hitting an impressive 30,000. This surge was fueled by strong festival demand, with a month-on-month (M-o-M) registration growth of 30% and a year-on-year (Y-o-Y) increase of 82%. They claim a 35% share in the electric scooter market for November, competing with brands like Ather Energy, Okinawa Autotech, Ampere EV by Greaves, Hero Electric, and TVS Motor Company.

As Ola Electric gears up for its IPO, they’re undergoing a corporate restructuring to become a public company, according to regulatory filings. Insiders predict an IPO between $800 million to $1 billion, with plans to file a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) before December 20.

Recently securing funding of around Rs3,200 crore, a mix of equity and debt, has propelled their valuation to $5.5 billion, surpassing the previous $5 billion valuation. These funds will be used to boost Ola’s electric vehicle business, establish India’s first lithium-ion (Li-ion) cell manufacturing unit in Krishnagiri (Tamil Nadu), and accelerate the growth of their two-wheeler manufacturing capacity, including the launch of electric motorcycles and the construction of the Gigafactory.

The government has designated Ola Electric as the exclusive Indian Electric Vehicle (EV) company under the production-linked incentive (PLI)-advanced chemistry cell (ACC) scheme. This scheme, with a maximum capacity of 20 gigawatt-hours (GWh), aims to localize critical aspects of the EV value chain.

In the midst of financial intricacies, Ola Electric’s net loss rings in at around Rs1,472 crore in FY23, coupled with an EBITDA loss of Rs1,318 crore for the fiscal year, as total expenses surge to Rs3,383 crore, leaving a significant mark on the financial narrative.

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