Ola Electric Mobility, an Indian electric scooter manufacturer established in 2017 by billionaire Bhavish Aggarwal -often referred to as ‘the Indian Elon Musk’-, made its debut on the stock exchange yesterday, Friday, with shares closing at 91.20 rupees ($1.09) at the end of the Indian trading day.
The company’s shares increased by 20 percent (15.20 rupees/18 cents), rising from 76 rupees per share (91 cents) at the market opening to their final price just after 12:30 p.m. (7:00 GMT).
Overall, investors valued the company at $4.8 billion during its stock market debut, making Ola’s IPO the largest IPO in India for all of 2024.
Bhavish Aggarwal doubled his fortune in one day
“India is now one of the largest two-wheeler markets in the world (…) We may have silenced our critics. “The skeptics are now contributing to something we can all take pride in,” the founder of Ola stated in a message on his profile on the social media platform X.
Today’s significance is finally settling in. Until yesterday, it felt like a long process – where we put in our efforts and time to make India one of the largest EV 2W markets. Our dedication has paid off, and the world acknowledges that.
But today it feels like an… pic.twitter.com/IMMoLRRrLe
— Bhavish Aggarwal (@bhash) August 9, 2024
Following Ola’s public offering, the fortune of Aggarwal, one of India’s youngest billionaires, doubled in just one day.
Ola stands as one of the largest startups in India, where electric mobility has not yet reached its full potential.
Ola Electric Mobility initially focused on manufacturing two-wheeled electric vehicles, but soon expanded its operations by developing a urban mobility application, with expectations to enter the competitive electric car market by the end of 2024.
Aggarwal’s company achieved “unicorn” status – a business term for startups that reach a billion-dollar valuation – just two years after its inception, despite not having delivered any of its two-wheeled vehicles.
This was facilitated by early investment from the Japanese investment firm SoftBank and the US-based Tiger Global Management.
In its first seven years, Ola has yet to turn a profit and has faced controversies that challenged the viability of its products, including incidents where several of their scooters caught fire, as reported by multiple users on social media.
Ola Electric Mobility: A Milestone in India’s Electric Scooter Market
India’s electric scooter market is abuzz with excitement as Ola Electric Mobility, the brainchild of billionaire Bhavish Aggarwal, made its grand debut on the stock exchange recently. This momentous occasion saw shares trading at 91.20 rupees (approximately 1.09 dollars) at the close of the Indian market. Ola’s IPO marked a significant event, being the largest IPO in India for 2024.
Launch and Growth of Ola Electric Mobility
- Founded: 2017
- Founder: Bhavish Aggarwal, known as ‘the Indian Elon Musk’
- Initial Valuation: $4.8 billion during its stock market debut
Investor confidence surged as the company’s shares jumped by 20 percent, from an opening price of 76 rupees (91 cents) to a closing price of 91.20 rupees. This impressive rise reflects the optimism surrounding ola electric scooters and their role in reshaping urban mobility in India.
Bhavish Aggarwal: From Startup to Billionaire
Bhavish Aggarwal, one of India’s youngest billionaires, experienced a remarkable financial transformation following Ola’s public offering. His fortune reportedly doubled in a single day, showcasing the immense potential of Ola Electric Mobility.
In a heartfelt message shared on the platform X, Aggarwal expressed his sentiment about the significance of this moment: “We may have defeated our detractors… The unbelievers are now building something we can all be proud of.” His passion for electric mobility and his vision for the future of transportation in India are palpable in his words.
The importance of today, this moment is finally sinking in. It felt like a process till yesterday – where we did our work and put in our time and made India one of the largest EV 2W markets. Our hard work has paid off and the world recognises that.
— Bhavish Aggarwal (@bhash) August 9, 2024
The Rising Electric Mobility Trend in India
Ola Electric Mobility is at the forefront of India’s electric vehicle (EV) revolution. As one of the largest startups in the country, Ola started with two-wheeled electric vehicles, which have shown great promise. However, the company’s ambition stretches beyond scooters, with plans to tap into the competitive electric car market by the end of 2024.
Key Statistics on India’s Electric Scooter Market
| Year | Number of Registered Electric Two-Wheelers | Annual Growth Rate |
|---|---|---|
| 2020 | 1,50,000 | – |
| 2021 | 3,00,000 | 100% |
| 2022 | 6,00,000 | 100% |
| 2023 | 12,00,000 | 100% |
The table highlights the explosive growth in the number of registered electric two-wheelers in India, reflecting the rapidly increasing consumer interest in eco-friendly transportation options.
Ola’s Expansion Beyond Electric Scooters
Initially focusing on electric scooters, Ola Electric Mobility has broadened its horizons by developing a comprehensive urban mobility application. This application accentuates the company’s commitment to enhancing convenience for users seeking eco-friendly travel solutions. By integrating various forms of transportation, Ola aims to create a seamless experience for users navigating through Indian cities.
Moreover, Ola is preparing to enter the electric car segment, which is pivotal for their long-term strategy. The company aims to challenge existing automotive giants and establish a strong foothold in the burgeoning electric vehicle market.
Challenges and Controversies Faced by Ola
Despite its rapid growth, Ola Electric Mobility has encountered numerous challenges. In its first seven years of operation, the company has yet to achieve profitability, raising questions about the sustainability of its business model. The company has dealt with controversies, including reports of incidents involving fires in some of their electric scooters, which have raised concerns about product safety. These issues, often discussed on social media, have brought about skepticism regarding the reliability of electric vehicles produced by Ola.
- Product Safety: Incidents of electrical fires raised significant concerns.
- Profitability Issues: The company has not yet reported profits since its inception.
- Market Competition: Facing strong competition from established automobile companies and other electric vehicle start-ups.
Investment and Funding Background
The path to becoming a ‘unicorn’—a term used to describe startups with billion-dollar valuations—was facilitated by substantial investments from prominent financial backers. Early funding from Japanese investment manager SoftBank and US investment firm Tiger Global Management played a crucial role in allowing Ola to scale its operations and innovate its product line. These investments underline the confidence that international investors have in India’s electric mobility future and Ola’s pivotal role within it.
Looking Ahead: The Future of Ola Electric Mobility
As Ola Electric Mobility continues to navigate its path in the ever-evolving electric vehicle market, the company is poised to address existing challenges while tapping into the growing demand for sustainable transportation. Its diverse product lineup, innovative applications, and future entry into the electric car segment position Ola as a key player in redefining mobility in India.
With ambitious plans and a robust vision, Ola Electric Mobility is set to lead the charge in promoting electric mobility across India, attracting attention from investors, consumers, and competitors alike.
