Ola Electric News: Ola Electric posts Rs 200 crore loss in FY21


Bengaluru: Ola Electric’s losses in the financial year ended March 2021 touched nearly Rs 200 crore, regulatory filings accessed by ET showed, a period in which the mobility company pivoted from building a battery-as-a-service business to manufacturing electric scooters.

The company clocked operational revenue of only Rs 86 lakh as it did not sell a single product during the period. Employee benefits made up close to 70% of total expenses.

Ola Electric was earlier running a pilot in Gurugram where it had set up battery swapping stations for electric three-wheelers.

Revenue from swapping and subscriptions was Rs 85 lakh.

The company shut that business and cofounder Ankit Jain quit in August 2020.

Ola Electric did not respond.

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The company
acquired Dutch electric scooter company Etergo in May 2020 and brought its ‘app scooter’ to India. The vehicle underwent many changes before it started being sold as the Ola S1 Pro.

The company began building its scooter factory in February 2021 and in December delivered its first 100 scooters.

Ola Electric’s overall revenue, which included interest earned on bank deposits, was Rs 106 crore.

The company brought in Rs 97 crore as interest from bank deposits.

It went through multiple funding rounds even before it started its business, which is likely to have contributed to the income from interest.

In July 2019, Ola Electric raised $250 million from Japan’s SoftBank to become a unicorn.

It raised a further $200 million in September 2021 from Alpha Wave Ventures and SoftBank, valuing it at $3 billion. In January 2022, it raised $200 million at a valuation of $5 billion.

The company started taking bookings from customers for its electric scooter in July.

In October, it said it had clocked sales worth Rs 1,100 crore in two days.

In March, it became the best-selling electric two-wheeler after Hero Electric, clocking over 9,000 units.

However, many customers have raised complaints about the quality of the vehicle.

An Ola S1 Pro caught fire on March 27 in Pune, one of many such recent incidents involving electric scooters.

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