SUMMARY
In Q1 FY24, Ola Electric incurred a loss of INR 268 Cr as against sales of INR 1,242.7 Cr
In the first three months of FY24, the startup had spent INR 1,109.4 Cr for procurement
It reported a total expenditure of INR 1,460.7 Cr in the first three months of FY24
Bhavish Aggarwal-led Ola Electric Mobility has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise INR 5,500 Cr by issuing new shares.
Besides this, Ola’s existing investors, including Agarwal himself, will participate in a massive offer-for-sale (OFS) component of the IPO, which comprises over 10 Cr equity shares.
As per the latest financials, in the first three months of FY24, which includes April, May and June, Ola Electric reported sales of INR 1,242.7 Cr, almost achieving half the revenue that the Bengaluru-based startup reported in FY23.
Between April 1, 2022 and March 31, 2023 i.e. FY23, Ola Electric’s sales were at INR 2,630.9 Cr, a 605% increase from INR 373 Cr in FY22. This impressive growth could be attributed to the startup’s strong electric sales in 2022.
It is pertinent to mention here that the startup’s primary source of revenue is earned by two-wheelers sales.
Including other income, the EV unicorn has reported a total revenue of INR 1,278.6 Cr in the first quarter of FY24. The startup’s total income in FY23 stood at INR 2,782.6 Cr as against INR 456.2 Cr in the previous fiscal year.
In the first quarter (Q1) of FY24, Ola Electric’s losses stood at INR 268 Cr. In FY23, the startup reported a net loss of INR 1,471.6 Cr, an 88% increase from INR 783.4 Cr in the previous fiscal year.
Where Did Ola Electric Spend?
Ola Electric, in the first three months of FY24, reported a total expenditure of INR 1,460.7 Cr. In FY23, its expenses stood at INR 3,883.3 Cr, a 231% increase from INR 1,173.8 Cr in FY22.
- Procurement Cost: Being an EV manufacturer, Ola Electric’s major expense was the procurement of materials required for building its scooters. In the first three months of FY24, the startup had spent INR 1,109.4 Cr. This is almost 76% of the total expenditure. In FY23, it spent INR 2,570.4 Cr for procurement, a 434% increase from INR 480.9 Cr in the previous fiscal year.
- Employee Benefit Expenses: Between April and June this year, Ola Electric spent INR 94.3 Cr to pay employees their salaries. In FY23, the firm’s employee benefit expenses stood at INR 426.7 Cr, a 51% increase from INR 282.4 Cr in the previous year.
- Advertising Expenses: Ola Electric spent INR 13.1 Cr for advertising and promotional activities in the first three months of FY24. The startup spent INR 61.4 Cr for marketing in FY23, a 24% increase from INR 49.4 Cr in the previous year.
Founded in 2017, Ola Electric entered the celebrated unicorn club within two years after raising $250 Mn from Masayoshi Son-led SoftBank. In October this year, the company raised a funding of INR 3,200 Cr ($384 Mn), which was a mix of equity and debt. While Temasek led the equity part, the debt was led by the State Bank of India.
To date, the EV unicorn has raised close to a billion dollars in funding and counts backers like Tiger Global, Matrix Partners, Alpha Wave and SoftBank, among others.
In the EV space, Ola Electric competes against the likes of Ather, Bounce Infinity, Hero, Revolt, TVS, Okinawa, among others.
