Ola Electric Signs USD 100 Million Financing Agreement In India

Ola Electric_02_Bhavish Aggarwal on Ola Scooter in front of Vidhana Soud

Ola Electric and Bank of Baroda have signed the largest long-term debt financing agreement in the Indian EV industry spanning a decade

Ola Electric has today released an official statement that it has penned down a deal with Bank of Baroda in what has been said to be the largest long-term debt financing agreement in the Indian electric vehicle industry spanning ten years. The funding of USD 100 million (Rs. 744.45 crore approximately) is towards the financial closure of the Phase 1 of the ‘Ola Futurefactory’.

The facility will act as a global production hub for Ola Electric’s zero-emission two-wheelers and already Rs. 2,400 crore investment was announced in December 2020 as part of the Phase 1 duties to establish the unit. Bhavish Aggarwal, Chairman & Group CEO, Ola was recently seen riding the brand’s first e-scooter based on Etergo AppScooter Ola.

Speaking on the financial agreement, he said, “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. 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,”
Ola Electric_03_Bhavish Aggarwal takes Ola Scooter for a spinHe acknowledged that the central government has brought in several policies to incentivise make-in-India and enable the country to become a global EV leader. He expects Ola to lead from the front in this aspect. The Ola Futurefactory is being set up at Hosur in the district of Krishnagiri, Tamil Nadu and it spans across 500 acres.

Claimed to be the world’s largest two-wheeler factory, it will be able to manufacture 10 million vehicles at its full capacity. The first phase of Ola Futurefactory is nearing completion and the production trials of the first Ola Electric scooter will begin.
Ola Electric_01_Bhavish Aggarwal on Ola Scooter zipping past Vidhana SouThe Ola Futurefactory will serve as the global EV hub for Ola scooters and other two-wheelers as they will be exported to Europe, UK, Latin America, Asia Pacific, Australia and New Zealand. The brand is also setting up its Hypercharger Network across several cities in India.