Indian EV Startup Ola Electric Soars 20% on Debut, Valued at $4.8 Billion

Ola Electric: A $4.8 Billion Debut

Ola Electric, backed by SoftBank, made a strong debut on the Indian stock market, surging 20% on its first day of trading. This success places the company's valuation at a substantial $4.8 billion.

The company raised over $730 million through its initial public offering (IPO) in Mumbai, making it the largest listing in India this year. Ola Electric's shares opened at 76 rupees (91 cents) and closed the day around 91.20 rupees.

Betting on India's EV Market

Investors are confident that Ola Electric will become a key player in the booming Indian electric vehicle market. The Indian government is actively encouraging the EV industry, with a focus on two-wheelers.

McKinsey & Co. predicts that by 2030, electric two-wheelers will account for a significant 60% to 70% of all new scooter sales in India.

Ola Electric, founded by renowned entrepreneur Bhavish Aggarwal, is capitalizing on this trend. The company aims to dominate the market by providing a comprehensive solution, from design to manufacturing and batteries, similar to Tesla's approach.

Ambitious Plans for the Future

Ola Electric plans to utilize the IPO proceeds to reduce debt, invest in research and development, and expand its gigafactory battery plant.

While Ola Electric's revenue grew 90% year-on-year in the fiscal year ending March 31, it still hasn't turned a profit. However, the company's impressive market debut suggests a bright future in the Indian EV landscape.