Ola Electric raises $100 million from Bank of Baroda for EV manufacturing unit
Ola is raising $100 million from the state-run Bank of Baroda (BoB) to finance the first phase of the world’s largest electric two-wheeler factory. Ola Electric Mobility is raising funds as a long-term loan. The plant is being built in Tamil Nadu’s Krishnagiri district. This factory will have a capacity of 2 million electric vehicles a year initially. Read further to know more about Ola Electric raises $100 million.
Ola Electric raises $100 million
It said that it will invest ₹2,400 crores in the first phase of its so-called ‘future factory’. Recently the company announced that it is about to complete and the brand will soon bring its electric scooters shortly.
“Today’s agreement for long-term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time,” Ola chairman and group chief executive officer Bhavish Aggarwal said.
“We are committed to accelerating the transition to sustainable mobility and manufacture made-in-India EVs for the world, and we are happy that Bank of Baroda has joined us in our journey”.
Sanjiv Chadha, managing director and CEO, Bank of Baroda said that “The government has brought in several policies to incentivize Make-in-India and enable India to become a global EV leader. Ola is leading from the front, and we are delighted to partner with them for their EV business. The Ola Future Factory will put India on the global EV map, and we are proud to be associated with them.”
Ola Electric plans for largest electric two-wheeler factory
Recently, Ola Electric has announced a two-wheeler manufacturing plant with a capacity to produce 10 million units annually. The Ola’s mega EV factory is said to be the largest two-wheeler factory in the world, the most advanced and most sustainable.
It will be manufactured at the company’s new facility in Tamil Nadu. Last year, it has acquired Etergo BV an electric scooter company for an undisclosed amount. The joint venture will bring Ola’s first electric two-wheeler. The Etergo has raised about $23.3 million to date from German automakers and through crowdfunding.
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