Bengaluru-based two-wheeler manufacturer Ola Electric Mobility Limited has announced an investment in Ola Electric Technologies Private Limited (OET) and Ola Cell Technologies Private Ltd (OCT), which are wholly owned subsidiaries of the company.
The company plans to invest ₹2,000 crore in its wholly owned subsidiaries engaged in electric vehicles and battery cell manufacturing to expand operations and further strengthen its EV ecosystem.
Capital allocation
Of the planned investment, ₹500 crore will be infused into Ola Cell Technologies for battery cell manufacturing and distribution, while ₹1,500 crore will go towards Ola Electric Technologies, which handles electric vehicle manufacturing and related services across the EV value chain.
OCT is crucial for producing in-house cells, reducing dependence on imports, and supporting Gen-3 vehicle platforms. It is engaged in the business of manufacturing, processing, assembling, exporting, selling, repairing, and distributing batteries/cells.
OET represents the main EV production arm, handling the manufacturing of electric scooters as the brand navigates a competitive market, and is primarily engaged in providing services across the electric vehicle value chain, as well as the manufacture and supply of electric vehicles. Ola Electric Mobility maintains 100 per cent control over both entities, ensuring a unified strategy.
The Cell Tech company’s turnover for FY25 was ₹73 crore, while the Electric Tech company’s was ₹4,717 crore.
It is stated for both companies that the funds infused by the owner company are to support its business requirements.
Its early funding included ₹400 crore from Tiger Global Management, Matrix Partners India, and ₹ 1,750 crore investment from SoftBank Group.
The company later secured ₹3,200 crore in a combined equity and debt round led by Temasek Holdings and State Bank of India to support its Gigafactory plans. Under an MoU with the Tamil Nadu government, OCT committed ₹5,114 crore towards building its Gigafactory infrastructure.