Ola Electric has hired investment banks Kotak Mahindra Capital and Goldman Sachs for an IPO in the first quarter of 2024. Prior to the end of government subsidies for electric vehicles, the electric mobility startup wants to go public. Ola Electric is now one of the select group of venture capital-backed businesses to start IPO discussions within a six-month period.

India Shelter, a company that provides affordable housing and is backed by Nexus Ventures and Westbridge Capital, chose i-banks for a Rs 2,000 cr IPO, according to a  Moneycontrol’s report from May 23. Reportedly, the electric mobility startup, which is supported by some of the largest private market investors in the world, including SoftBank and Tiger Global, met with a number of domestic and international investment banks in May to begin making plans for an IPO. Other key events in the roadmap to the IPO will be the launch of the motorcycle and the progress of the battery unit.

Until now Ola Electric has entirely operated on the electric scooter segment but now the company plans on introducing a new motorcycle. Till now no dates have been finalized yet but the aim is to launch the IPO prior to the elections next year.

Reportedly, the company’s IPO will include of combination of primary and secondary share offerings.  The company is currently debating the valuation, though, in light of how unstable and young the market for electric vehicles is. Bhavish Aggarwal, the company’s founder and the owner of the cab aggregation company Ola, is reportedly aiming for a $10 billion market capitalization.

When it raised $200 million in January 2022 from Tekne Private Ventures, Alpine Opportunity Fund, and Edelweiss, among others, the company’s last official valuation was $5 billion. A media report claims that the business raised $300 million earlier this week at a valuation of $6 billion. According to the reports, Qatar Investment Authority or Temasek, two sovereign funds from Singapore, may have expressed interest. Ola hasn’t yet provided confirmation on this.

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