Laden with losses and increasing need of cash for its aggressive expansion plans, Ola Electric's journey to profitability is going to be bumpy and risky
It’s not just a reputational risk that brand Ola Electric faces, but also the issues or threats to the business and its ambitious growth plans may be much larger. Being the first to possibly go public as a pure electric vehicle (EV) manufacturer of two wheelers in India, Ola Electric’s draft red herring prospectus (DRHP) spotlights a set of challenges that may be too large to ignore.
Last December, Ola Electric filed its DRHP with markets regulator, the Securities Exchange Board of India (Sebi), to launch its initial public offering (IPO) for stock markets listing. The company is yet to receive Sebi approval for the IPO.