Ola Electric Sets Sight On Profitability, To Invest In Cell Manufacturing And R&D
The path to profitability is clear for Bengaluru-based Ola Electric Mobility Ltd., with its focus on generating cash flows via investing in cell manufacturing and research and development, according to top executives.
The electric scooter maker is investing for growth and expansion in the future, Harish Abichandani, chief financial officer of Ola Electric Mobility, told NDTV Profit in a televised interview. "We are raising capital for cell manufacturing and research and development. All these get factored in terms of the cash flows generated in the future."
"As we scale up, the path to profitability is faster," he said, as the company is looking to raise funds via an initial public offering this week. "Our capex is largely well-funded, both for the auto and the cell side."
Ola Electric will be raising Rs 5,500 crore in the primary issue and Rs 645.6 crore via an offer for sale from promoter entities and investors. More than half of the proceeds from the IPO will be used for capital expenditure and investing in R&D, according to the company's red herring prospectus.
Further, the Bhavish Aggarwal-led company will also use the funds for repayment of borrowing and spending on organic growth purposes.
Investment in technology, manufacturing, vertical integration and the benefit of volume-linked margin growth will help achieve the path to profitability, founder promoter Bhavish Aggarwal told NDTV Profit.
The average selling price of the EV manufacturer has fallen, given the broadening of their product portfolio, Aggarwal said. "But our revenue has grown significantly," he said. "We are focused on bringing EVs to the mass market and we do expect mass market products to penetrate deeper into the small towns and villages."
"We are building Ola Electric focused on the future of electrification in automotive and this journey is just beginning," Aggarwal said. "Growth is the story; the company is young, and we wanted to bring this company to market early because of its Indian manufacturing story."
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
