The company has received funding for its mega project.
Up and coming EV giant Ola Electric has just announced that it has signed the largest longterm debt financing agreement in the Indian EV industry with the Bank of Baroda. The agreement between the two companies will span ten years, and amount to a whopping $100 million USD. The funding will go directly towards the construction of Ola's Futurefactory, a massive project which aims to be the largest EV manufacturing hub in the word.
Ola Electric chairman and Group CEO Bhavish Aggarwal has some very lofty plans for the Futurefactory. He recently took to Twitter to showcase the beginning of operations of the Ola Futurefactory. On top of this, Aggarwal also showcased the prototype of the Ola Electric Scooter in a video he posted on the social media platform. The $100 million financing agreement signed between Ola Electric and the Bank of Baroda will go towards the completion of Phase I of the Ola Futurefactory, which is expected to begin mass production of the Ola Electric Scooter within the month.
In a report published by Indian automotive publication, GaadiWaadi, Bhavish Aggarwal expressed his excitement towards the deal stating, “Today’s agreement for long term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time. We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world and we are happy that Bank of Baroda has joined us in our journey.”
The Ola Electric Scooter is expected to make its debut in the Indian market later this month. Based on the Etergo AppScooter, Ola Electric acquired all the rights to the Dutch electric scooter platform. Additionally, Ola's Futurefactory will serve as the company's global EV manufacturing hub, and will be responsible for producing electric two-wheelers for the global market. Ola Electric claims that the facility will be able to produce 10 million vehicles per year. The company seeks to expand into the global market by 2022, particularly in Europe, Latin America, Asia Pacific, and Australia.