Ola Electric announced on Monday that it has struck a 10-year debt financing agreement worth $100 million (about Rs 744.5 crore) with Bank of Baroda.
The $100 million debt is for the funding and financial closure of phase I of Ola Futurefactory, the company’s global production base for electric two-wheelers, according to a statement.
Ola announced in December of last year that it would invest Rs 2,400 crore in the factory’s phase I.
“Today’s agreement between Ola and Bank of Baroda for long-term debt financing demonstrates institutional lenders’ trust in our aspirations to create the world’s largest two-wheeler manufacturer in record time.”
We are committed to expediting the transition to sustainable transportation and producing made-in-India EVs for the rest of the globe, and we are delighted that Bank of Baroda has joined us on this path.” Bhavish Aggarwal, Chairman and Group CEO of Ola, stated.
Ola Futurefactory is being built on a 500-acre plot of land in Tamil Nadu. It will be the world’s largest two-wheeler plant when it reaches its full capacity of 10 million units per year.
“The government has implemented a number of policies to encourage Make-in-India and position India as a global EV leader.” Ola is leading from the front, and we are excited to work with them on their EV venture. The Ola Futurefactory will place India on the global EV map, and we are happy to be a part of it,? said Sanjiv Chadha, Managing Director and CEO of Bank of Baroda.
Ola stated that the first phase of the Futurefactory is approaching completion, after which production trials of the Ola Scooter will begin.
While the firm has yet to reveal the cost and features of its e-scooter, it has announced that it is working on establishing a ‘Hypercharger Network’ with one lakh charging sites spread over 400 cities.
Aggarwal recently tweeted a video of himself riding an Ola electric scooter in Bengaluru.
The senior executive previously stated that the e-scooter would likely be launched in India in July of this year, and that Ola Electric would consider introducing the vehicle to overseas markets, including France, Italy, and Germany, this fiscal year as well.
The introduction of the electric scooter is consistent with Ola’s worldwide mission of transforming mobility into a more sustainable, accessible, and connected future.
Ola Electric also purchased Amsterdam-based Etergo BV for an unknown sum last year. The acquisition of Etergo was intended to strengthen the company’s engineering and design skills in the electric mobility space.
When it is released, the Ola electric scooter will compete with the Hero MotoCorp-backed Ather Energy, Bajaj Auto, and others.