Ola Electric Mobility (OEM) has become the latest startup to join India’s rapidly increasing unicorn club. This after OEM, which is Ola’s electric vehicle division, raised $250 million (nearly Rs 1,725 crore) from Japanese telecom giant SoftBank. SoftBank is already the largest investor in ride-hailing firm and Uber’s main rival Ola. ANI technologies is the parent company of both Ola and OEM.
As per the information disclosed by the latest regulatory filings, SoftBank has received 4,326 fully and compulsorily convertible series B preference shares at the face value of Rs 10 each from Ola. These shares grant SoftBank special rights and privileges, the filings claimed.
The latest capital infusion comes after OEM, which was only recently carved out from Ola, raised two back-to-back funding only few months ago. Firstly it raised Rs 400 crore through a funding round that was led by Tiger Global and Matrix India in March and a month later secured undisclosed investment amount from Ratan Tata.
Ola’s electric vehicle arm is currently running several pilot projects as a part of its ambitious goal to put 1 Mn electric vehicles on Indian streets by end of 2021. This tall aim will certainly serve as a great helping hand in fulfilling Indian government’s long term electric vehicle vision.
The government has rolled out a vision to make electric vehicles among the mainstream vehicles of India. As increasing air pollution and climate change poses grave challenge to humanity’s survival, Indian government is pinning hopes on electric vehicles to achieve redemption on this critical front. However, industry experts claim that India’s transition to electric vehicles won’t be all that smooth.
Nonetheless, OEM is likely to be one of the few companies that will be in better position to leverage the promising market of electric vehicles. The company’s recent fund raising spree and newly achieved unicorn status is sure indicator of this fact.