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Ola Electric and Bank of Baroda on Monday signed a long-term, 10-year debt financing agreement of $100 million for the funding and financial closure of Phase 1 of the Ola Futurefactory, its global manufacturing hub for electric two-wheelers.
Ola had earlier announced last December that it will be investing ₹2,400 crore for setting up Phase 1 of the factory. This debt financing is part of that overall investment.
“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,” said Bhavish Aggarwal, Chairman and Group CEO, Ola, in a statement.
The Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu, India. At full capacity of 10 million vehicles annually, it aims to be the world’s largest two-wheeler factory. Phase 1 of Ola Futurefactory is nearing completion shortly, following which production trials of Ola Scooter will commence. The Ola Scooter will be manufactured at the Ola Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.
“The government has brought in several policies to incentivise make-in-India and to enable India to become a global EV leader. Ola is leading from the front and we are delighted to partner with them for their EV business. The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them” said Sanjiv Chadha, Managing Director & CEO, Bank of Baroda.
Ola Electric’s last big fund raise of $250 million from SoftBank in July 2019 saw the company valued at an estimated $1 billion, taking it into the Unicorn league of companies.
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