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Ola Electric has raised Rs 3,200 crore in equity and debt funding from investors led by Temasek, as well as the State Bank of India, to fund the expansion of its electric vehicle business.

The e-scooter maker added it will use the funds to also set up its lithium-ion cell manufacturing facility—Ola Electric calls it its ‘Gigafactory’—in Krishnagiri, Tamil Nadu.

“At Ola, our vision is to end ICE age in automobiles and our upcoming Gigafactory will be a big leap in India’s journey towards becoming a global EV hub,” said Ola Electric Founder and CEO, Bhavish Aggarwal.

“We are committed towards developing core technologies in EVs and cell and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility,” he added.

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Ola and Ola Electric likely to go public by next year: Ola’s Bhavish Aggarwal

Ola has planned the setup of the Gigafactory in two stages. Its initial capacity will be 5 GWh, which will then be scaled up in phases to 100 GWh.

The fundraise comes at a time when Ola Electric is headed for an initial public offering where it hopes to raise $1 billion in net proceeds at a valuation of $10 billion. Its draft red herring prospectus is expected to be filed by the end of October 2023, as per Reuters.

According to YourStory‘s sources, the EV maker has already engaged investment bankers to underwrite its IPO.

Aggarwal, at YourStory’s TechSparks 2023 event in Bengaluru, expressed his hopes to set up a four-wheeler factory near the Gigawatt factory, and make it a one-stop hub for all things Ola Electric.

He also said he was scouting for land in Uttar Pradesh to set up a second production unit, although plans are yet to be finalised.

Apart from Temasek, Ola Electric’s roster of investors includes SoftBank, Tiger Global, Edelweiss, Matrix Partners, Kia Motors, and Alpha Wave Investors. Some of its investors have expressed interest in offloading their stakes during the company’s IPO.