At an event hosted at the Ola Centre in Bengaluru, Bhavish Aggarwal, Founder and CEO of Ola Electric, laid down two themes that could help the company achieve profitability ahead of its initial public offering (IPO) launch.
Aggarwal said that the company is banking on high revenue and low costs as volumes rise, which is one of its themes for profitability.
He added that the company’s 4680 Lithium ion cell manufactured in-house—which combines high energy density and high power density—would help significantly reduce the costs of manufacturing vehicles and help the company become profitable.
According to the red herring prospectus filed recently by the company, the EV-two-wheeler maker reported widening losses of Rs 1,584 crore for the year ended March 31, 2024, compared with a loss of Rs 1,472 crore for the previous year.
However, Aggarwal did not outline a timeline for the company’s profitability.
The company will start delivering its motorbikes to customers early next year and integrate its new Lithium-ion cells beginning next year. Ola Electric will provide more information about its product line at its annual product event on August 15, the founder added.
When asked about the company’s plan to launch electric cars, an idea that had been in the works at the company but shelved ahead of its IPO, according to a report by Reuters, Aggarwal reiterated that the company’s “focus is very sharply on the two-wheeler ecosystem.”
According to one of the sources cited in the report, the founder had plans to launch a premium sports car. However, if and when the company revives its plans, it will focus on developing affordable, mass-market cars.
“In India, luxury cars are relevant for very few people, but India has to be a large part of the global solution,” Aggarwal said at the event today, adding that while the Western world is solving climate change and sustainability by selling luxury cars to its population, the priorities of Indian consumers are not the same.
Ola Electric’s much-awaited IPO will open for subscription on August 2, while the anchor investor bidding will start a day earlier on August 1. The issue will close on August 6.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director at Ola Electric.)
