When is Ola going for an IPO?
With the IPO season in full bloom for digital ventures, big players like Ola cannot be far behind. Unicorn that hails rides in India, Ola has succeeded in generating excitement for its electric scooter ambitions, but the vehicle's long-term viability will be contingent on a number of circumstances, some of which are beyond the company's control. Ola is reportedly in early talks with Citigroup, Morgan Stanley, JPMorgan, and Kotak Mahindra Capital to manage its projected initial public offering.
Get A Glimpse Of The Initial Information On Ola's Initial Public Offering
1. Ola is collaborating with a select set of banks, including Citigroup Inc and Kotak Mahindra Bank Ltd, to conduct the initial public offering, two sources familiar with the matter told PTI.
2. According to one of the sources, the parameters of ANI Technologies' (which operates Ola) proposal, including its size and timetable, might yet alter while negotiations continue. Emails addressed to Ola went unanswered.
3. According to a report, Ola co-founder Bhavish Aggarwal has stated that the business — which competes with US-based Uber — is considering a public offering next year but has not yet established a date.
4. Ola has already mentioned the possibility of a listing. An IPO will enable Ola investors such as SoftBank, Tiger Global, and Steadview Capital to leave or partially sell their stakes in the firm.
5. Ola, which was founded in 2011 by Bhavish Aggarwal and Ankit Bhati, operates in India, Australia, New Zealand, and the United Kingdom has raised over USD 4 billion in fundraising to date.
6. Ola announced a USD 500 million (about Rs 3,733 crore) investment in July from Temasek, Warburg Pincus subsidiary Plum Wood Investment, and Bhavish Aggarwal.
7. Aggarwal stated at the time that the company's ride-hailing business had become "more strong, durable, and efficient" during the previous 12 months. "With a solid recovery following the shutdown and a move away from public transit, we are well-positioned to capitalize on our clients' diverse urban mobility demands," he had stated.
8. Ola also announced the growth of its employee stock option plan (ESOP) pool to Rs 3,000 crore and the allotment of an additional Rs 400 crore in shares to workers in the same month.
Ola’s future in India
India is the third-highest emitter of carbon dioxide in the world, accounting for 22 of the world's 30 most polluted cities. The country is also the world's largest market for two-wheelers, which account for 20% of total carbon dioxide emissions in India - with EVs now accounting for less than 1% of overall two-wheeler sales in India but with the growing need for energy conservation & numerous elements — some smooth roads, some steep ascents – will influence the trajectory of India's EV adoption:
Some of which includes; Excessive petrol costs, Increased number of manufacturers, Manufacturing of batteries, Infrastructure for charging, Market commercial, Governments' efforts.
So, is Ola capable of igniting a revolution?
To begin, the company's pricing approach appears to be on a collision course with industry norms. "Ola Electric's scooters are competitively priced, with the S1 retailing for Rs 85,000 ex-showroom Delhi after subsidies," Jefferies noted in a recent report. "This is 11% less expensive than the TVS iQube, 25% less expensive than the Ather 450X, and 41% less expensive than the Bajaj Chetak.
That might be a catalyst for customer excitement and for giving an alternative to internal combustion engines, which Aggarwal recognises is critical to his approach. For years, despite the government's massive push, India's customers have been hesitant to embrace EVs.
India is a signatory to the Paris Climate Agreement, which implies that by 2030, the country's carbon emissions must be reduced by around 35% from 2005 levels. The government has attempted everything to jumpstart an EV revolution in the country, from tax cuts to manufacturing incentives in the vehicle sector.
Ola Electric's success is contingent on its capacity to expand manufacturing, assure product quality, and establish a broad distribution network. However, incumbents now bear a greater burden of scaling up in EVs by using their R&D, manufacturing, and distribution capabilities - Let’s wait for tables to turn with the launch of Ola’s IPO.