Ola Electric, set to go public, reported a loss of $136 million in 2022-2023, according to sources.

Ola Electric, set to go public, reported a loss of $136 million in 2022-2023, according to sources.

Ola Electric Reports Operating Loss in the Last Financial Year

Ola Electric

Ola Electric, India’s largest e-scooter maker, has recorded an operating loss of $136 million in the last financial year, missing its publicly disclosed revenue goal, according to sources familiar with the matter. Despite this setback, the company is confident in its potential and is preparing for an IPO with a projected valuation of up to $700 million.

The financial figures for Ola Electric’s 2022/23 loss have not been previously reported or filed with Indian authorities. The company still has time until September to submit its earnings report. In the last financial year, the company generated $335 million in revenue, accompanied by over 150,000 unit sales. However, the operating loss of $136 million has raised concerns about the company’s financial performance.

Ola Electric had previously stated that it was on track to exceed a $1 billion run rate by the end of the year and that the future forecast looked promising. However, this projection for the 2022/23 revenue was not met. Industry insiders have revealed that the company sold approximately 21,400 electric scooters in March, representing a strong performance in the last month of the fiscal year.

Since its entry into the market in late 2021, Ola Electric has quickly become the leading e-scooter manufacturer in India, holding a 32% market share. Its main competitors include Ather Energy, as well as established companies like TVS Motor and Hero Electric. The company was valued at $5 billion last year and has successfully raised nearly $800 million in funding since 2019.

Earlier this year, Ola Electric outlined ambitious internal projections, estimating its revenue to quadruple to $1.5 billion by 2023-24. The company also aimed to achieve its first profitable year in the same period. However, these plans may need to be recalibrated due to the Indian government’s reduction in incentives for e-scooters in May. Analysts predict that this policy change will impact the growth plans of Ola Electric and other market players.

Despite the challenges posed by the incentives cut, Ola Electric remains optimistic about its prospects for the current year. The company believes it can achieve operational profitability, a key metric watched by potential IPO investors. Its existing investors are confident in Ola’s market leadership position, given its rapid rise in the e-scooter industry.

Ola Electric fabricates its e-scooters in Tamil Nadu, where it operates the “world’s largest 2-wheeler factory,” with a production capacity of 10 million units per year. The company has invested significant sums in expanding its factory and service centers, signaling its commitment to further growth and market dominance.

In conclusion, while Ola Electric experienced an operating loss in the last financial year, the company’s determination to overcome challenges and succeed in the e-scooter market remains strong. With its aggressive growth plans and market leadership position, Ola Electric is poised to make significant strides in the coming years.

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