IBEF: July 03, 2019
Ola's electric vehicle arm, Ola Electric Mobility (OEM) has secured a funding of over about US$ 250 million from SoftBank, according to regulatory documents.
This makes it second company founded by Bhavish Agrawal to enter the popular unicorn club of start-ups valued at more than US$ 1 billion. With this OEM has joined the list of unicorns in India that includes names like Flipkart, Zomato, Paytm as well as its parent, Ola.
Ola Electric increased the funds as part of its Series B round.
This introduction of funds is expected to help the firm to reach its target of introducing one million electric vehicles on Indian roads by 2021. SoftBank’s investment in Ola Electric has come when the government is encouraging the use of electric vehicle to reduce country’s pollution and cut down its oil import bill. This is also the main reason for the investment by Softbank.
The Indian electric car market size was valued at US$ 71.1 million in 2017 and is projected to reach US$ 707.4 million by 2025.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.