Ola Electric raises $200 mn for e-scooter expansion; company valued at $5 bn

    The latest round values the Ola Electric at $5 billion, the manufacturer said in a statement on Monday.
    By BLOOMBERG
    | Updated on Jan 24 2022, 10:28 PM IST
    Newly launched Ola Electric S1 scooter has been marred by delays with customers complaining online about missed delivery deadlines.
    Newly launched Ola Electric S1 scooter has been marred by delays with customers complaining online about missed delivery deadlines. (MINT_PRINT)
    Newly launched Ola Electric S1 scooter has been marred by delays with customers complaining online about missed delivery deadlines.
    Newly launched Ola Electric S1 scooter has been marred by delays with customers complaining online about missed delivery deadlines. (MINT_PRINT)

    Ola Electric Mobility Pvt., an Indian maker of electric two-wheelers, raised more than $200 million as it works to gain an early lead in the market for battery-powered scooters. The latest round values the company at $5 billion, the manufacturer said in a statement on Monday. Investors including Tekne Private Ventures, Alpine Opportunity Fund and Edelweiss participated.

    The startup, backed by Tiger Global and SoftBank Group Corp., is building the world’s largest two-wheeler manufacturing facility about two hours’ drive from its Bangalore headquarters. Its newly launched Ola S1 scooter has been marred by delays with customers complaining online about missed delivery deadlines.

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    Ola Electric is “looking forward to bringing our innovative products to more two-wheeler categories including bikes as well as cars,” Bhavish Aggarwal, Ola’s founder and chief executive officer, said in the statement.

    The new plant will employ 10,000 women at full strength, making it the world’s largest women-only factory, and the company plans to expand its annual manufacturing capacity to 10 million electric scooters.

    Delhi government proposes making 25% of new cab registrations electric

    (Reuters) - The Delhi city state government has proposed mandating a quarter of new cab registrations to be electric vehicles, according to a draft note by its transport department.

    The proposal would mandate apps providing transportation or delivery services, including cab operators such as Ola and Uber and food delivery apps Swiggy and Zomato, to register with the Delhi government as soon as the law comes into effect.

    The Delhi government has sought comments from stakeholders on the draft, which also proposes mandating half of all new two and three wheelers used for ride sharing and deliveries to be electric within a year of registration.

    The transport sector is the biggest polluter in and around New Delhi, the most polluted city in the world, followed by industries and utilities, according to a report by India's federal Earth sciences ministry.

    The report observed that cabs had emerged as one of the major polluting sources in Delhi, with every cab operated by ride hailing companies such as Ola and Uber travelling nearly 145,000 km (90,000 miles) per year on average.

    The draft, if approved, could provide relief to Delhi's citizens and the finances of its public health system, which environmental experts say incurs millions of dollars in healthcare costs every year due to pollution.

    The move could also reduce demand for fossil fuels in and around the region, among the biggest consumers of gasoline, natural gas and diesel.

    The draft also proposed imposing penalties on companies that don't comply with electric vehicle transition targets.

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    First Published Date: 24 Jan, 10:28 PM IST
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