Ola Electric, the electric vehicle (EV) arm of taxi aggregator Ola, announced on Monday that it had raised $ 100 million (Rs 744.5 crore) in long-term debt from the Bank of Baroda.
The company claimed that it was the largest long-term debt financing deal for India’s electric vehicle industry. This 10-year debt will be used to finance and financially close phase I of the Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers.
Last December, Ola announced that it would invest 2,400 crore rupees in the establishment of phase I of the plant. Earlier this month, Ola CEO Bhavish Aggarwal announced on Twitter that Phase I of the plant was nearing completion and the company’s electric scooters would hit the market soon.
“Today’s agreement for long-term debt financing between Ola and Bank of Baroda demonstrates the confidence of institutional lenders in our plans to build the world’s largest two-wheeler factory in record time .
We are committed to accelerating the transition to sustainable mobility and manufacturing electric vehicles made in India for the world and we are pleased that Bank of Baroda has joined us on our journey, ”said Aggarwal.
The Ola Futurefactory is coming to a 500 acre site in Tamil Nadu. At full capacity of 10 million vehicles per year, it will be the largest two-wheeler plant in the world.
Besides its two-wheeler factory, Ola Electric is also working on Hypercharger, which the company says will be the world’s largest electric two-wheeler charging network, spanning 400 cities in India and Europe, with more 100,000 charging stations. Ola electric scooters should offer a range of 75 km with just 18 minutes of charging.