Bhavish Aggarwal, chief executive officer (CEO) of Ola Cabs and founder of Ola Electric, was speaking at a press conference ahead of the initial public offering (IPO).
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shares Aola Electric Shares soared 20% after listing on Friday, valuing the Indian electric vehicle startup at about $4.8 billion.
Ola Electric, which priced its shares at 76 rupees ($0.91), raised more than $730 million in its initial public offering in Mumbai. Reuters reported that this is India’s largest listing transaction this year.
As of 3:52 pm local time, the stock price was about 91.20 rupees.
The first-day share price surge comes as investors bet the company will become a key player in India’s electric vehicle market. The government is taking action to revitalize industry.
Ola Electric, which makes electric scooters, launched its first product just two and a half years ago.
Two-wheelers are the most popular form of transportation in India. Electric two-wheelers are expected to account for 60% to 70% of all new scooter sales in India by 2030, according to McKinsey.
This is a trend that Ola Electric is trying to follow and is preparing to launch its first electric motorcycle product in the second half of 2025.
Founded by renowned entrepreneur Bhavish Aggarwal, the startup is positioning itself as a company that can do everything from design to manufacturing and batteries, like Tesla Do.
However, it appears the company has no plans to expand into automotive at the moment.
Ola Electric has some high-profile investors including SoftBank and Singaporean investment fund Temasek.
The company said it plans to use proceeds from the IPO to pay down debt, conduct more research and development and support the expansion of its gigafactory.
Although the company’s revenue for the fiscal year ended March 31 increased by 90% year-on-year, its losses widened. The company has yet to turn a profit.
Agarwal is also the co-founder of Indian ride-hailing company Ola Cabs.
