Ola Electric announced on Monday that it had signed a 10-year debt financing agreement of $ 100 million (around Rs 744.5 crore) with Bank of Baroda.
The 10-year, $ 100 million debt is intended to fund and financially close Phase I of Ola Futurefactory – its global electric two-wheeler manufacturing center, according to a statement.
Ola had, in December of last year, declared that he would invest 2,400 crore rupees for the establishment of phase I of the plant.
“Today’s agreement for long-term debt financing between Ola and Bank of Baroda demonstrates the confidence of 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 manufacturing electric vehicles made in India for the world and we are pleased that Bank of Baroda has joined us on our journey, ”said Bhavish Aggarwal, President and CEO of Ola .
Ola Futurefactory is coming to a 500 acre site in Tamil Nadu. At full capacity of 10 million vehicles per year, it will be the largest two-wheeler plant in the world.
“The government has put in place several policies to encourage Make-in-India and enable India to become a world leader in electric vehicles. Ola is leading the way and we are excited to partner with them on their electric vehicle business. The Ola Futurefactory will put India on the global electric vehicle map and we are proud to be associated with it, ”said Sanjiv Chadha, Managing Director and CEO of Bank of Baroda.
Ola said the first phase of the Futurefactory is coming to an end shortly, after which production trials of the Ola scooter will begin.
While the company has yet to disclose prices and specifications for its electric scooter, Ola said it is working on setting up a “network of hyperchargers” to include charging points from one to the other. lakh in 400 cities.
Recently, Aggarwal shared a video of him riding an Ola electric scooter for a ride in Bengaluru.
The top executive had earlier said that the electric scooter would likely launch in India in July this year and that Ola Electric would consider marketing the vehicle in international markets, including countries like France, Italy and the United States. Germany, also this year.
The launch of the electric scooter is part of Ola’s global vision to make mobility a more sustainable, accessible and connected future.
Ola Electric also acquired Amsterdam-based Etergo BV last year for an undisclosed amount. The acquisition of Etergo aimed to further strengthen its engineering and design capabilities in the field of electric mobility.
Once launched, the Ola electric scooter will take on Ather Energy, Bajaj Auto, backed by Hero MotoCorp, and others.