Ola electric mobility – electric vehicle arm of Ola – has secured $1Mn funding from existing investor Pawan Munjal, chairman and managing director of Hero Motor Corp. Munjal, who is one of India’s most well-known business tycoons, invested in the firm through his investment firm Pawan Munjal Family Trust.
As per the regulatory filings, accessed by Economic Times, Pawan Munjal Family Trust has been allotted total 18 preference shares valuing each at premium of Rs 39, 87, 608 and face value of Rs 10.
Ola electric mobility has been on a fundraising spree since last few months. Last year, it raised funds from SoftBank and auto giants Hyundai and Kia. The fundraising spree eventually propelled the company to the coveted unicorn club.
Ola’s subsidiary company is currently operating pilot electric mobility project in Nagpur, Gurugram and Bengaluru. Its arch-rival Uber is also said to be planning to substantially increase its electric fleets across India.
However, it is not merely ride-hailing companies that are aiming to take a shot at the impending boom of electric vehicles. Electric bike taxi rental companies like Vogo and Bounce are going full throttle to take the first mover advantage in the electric vehicle space.
Both companies recently raised substantial amount of funding to fuel their growth. Barely few weeks back Vogo raised $20 Mn while Bounce raised back to back funding of $105 Mn and $6.5 Mn respectively.
Investors optimism in the electric vehicle space stems from several government initiatives that aims at encouraging auto companies as well as new entrants to fuel the growth electrification in India.
The Indian government has ambitious aim to electrify all the vehicles by end of 2030 in a bid to fight climate change and reduce India’s import bills as well as energy needs.