With $335 million in revenue, Ola Electric, India’s largest e-scooter manufacturer, experienced an operational loss of $136 million last fiscal year.
Ola Electric, a SoftBank-backed company planning for an up to $700 million IPO, has not yet reported or filed its 2022–23 loss figure with Indian authorities, giving it until September to do so.
Ola opted out of commenting.
In a statement from last June, the company that makes electric scooters said that it was “on track to surpass $1 billion in run rate by the end of this year” and that “the future forecast looks even stronger.”
The run rate is a financial metric that is determined by multiplying one month’s worth of Ola’s revenue by 12.
However, the revenue forecast for 2022–2023 was not met. The first full year of operations saw it report revenue of $335 million with over 150,000 unit sales and an operating loss of $136 million, according to two sources with intimate knowledge of company financials.
In March, the final month of the fiscal year 2022–2023, They sold roughly 21,400 electric scooters.
With a 32% market share since it started selling e-scooters in late 2021, Ola has overtaken Ather Energy as well as businesses like TVS Motor and Hero Electric. Since 2019, investors have contributed almost $800 million towards its $5 billion valuation.
They had ambitious internal estimates early this year, anticipating that its revenue would treble to $1.5 billion in 2023–24, the same year it intends to turn a profit, according to Reuters last week.
However, this was before India reduced government incentives for e-scooters in May, which analysts predict will push other companies to reevaluate their growth strategies.
According to one of the sources, despite the reduced incentives, the company is still optimistic it can achieve operational profitability this year, a crucial indicator followed by potential IPO investors.
They is quickly becoming the market leader. Their current investors are optimistic about it, the source continued.
Company claims it manufactures its e-scooter in Tamil Nadu, a state in southern India, at “the world’s largest 2-wheeler factory,” which has the potential to construct 10 million units annually. In order to develop its production and service centers, the corporation has been investing hundreds of millions of dollars.
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