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Ola Electric recorded an operating loss of $136 million on a revenue of $335 million in FY23, Reuters reported quoting sources.

The EV maker—which surpassed Rs 500 crore in revenue in its first two months of FY23—said it was “on track to surpass a $1 billion run-rate by the end of this year” and “the future forecast looks even stronger.”

It has set ambitious internal projections, anticipating its revenue to surge fourfold to $1.5 billion in the fiscal year 2023-24.

Despite facing incentives cuts and recent events surrounding the FAME II scheme, Ola Electric was optimistic about achieving operational profitability this year, the report said.

The government introduced the FAME II subsidy to boost India’s nascent EV sector, with a capital outlay of Rs 10,000 crore. Out of this amount, it had specifically allocated Rs 2,000 crore to support electric two-wheelers’ growth.

Starting from June 1, 2023, the government reduced the FAME II subsidy for electric vehicles to Rs 10,000/kWh, down from the previous Rs 15,000/kWh. Additionally, it capped the maximum subsidy at 15% of the vehicle’s ex-factory price, a significant reduction from the previous level of 40%.

This resulted in a sharp decline of 57% in electric two-wheeler sales in June 2023, compared to the previous month.

Meanwhile, Ola Electric is progressing with its initial public offering (IPO) plans and has initiated discussions with investment bankers, two sources familiar with the matter told YourStory.

Till now, Goldman Sachs, Kotak, Citi, and Axis have come on board, although talks are still at a preliminary stage, a source from one of the four banks said.

The company wants to raise $1 billion in net proceeds at a valuation of $10 billion. Ola Electric is expected to file its draft red herring prospectus (DRHP) by the end of the next quarter and aims to launch the IPO by the final quarter of the current fiscal year.

While the company declined to comment on the matter, the IPO proceeds will be utilised to expand operations, establish the company’s battery manufacturing plant, and boost scooter production.

Notably, major shareholders such as Temasek, Softbank, Tiger Global Management, Edelweiss, Matrix Partners India, Kia Motors, and Alpha Wave Investors could also consider offloading some of their stakes in the company during the IPO, one of the sources told YourStory.