Ather Energy rival Ola Electric's losses surge from Rs 784 Crore to Rs 1,472 Crore in FY23

Bhavish Aggarwal-led EV giant Ola Electric, which battles with Tarun Mehta's Ather Energy, has reported a significant increase in its net losses, which nearly doubled from Rs 784.1 crore in FY22 to Rs 1,472 crore in the financial year ended March 2023 (FY23).

The significant escalation in losses comes despite a substantial 510% increase in consolidated revenue, reaching Rs 2,782 crore in FY23.

Escalating expenses

The EV giant's total expenses significantly contributed to loss growth, which surged from Rs 1.240 crore in FY22 to Rs 3,383 crore in FY23. Ola Electric, which began selling two-wheelers in December 2021, saw a remarkable year-on-year increase in revenue, primarily attributed to its commencement of two-wheeler sales.

Ola Electric's future financial targets 

Ola Electric is targeting an EBITDA profitability of Rs 803 crore by FY25, with an anticipated reduction in EBITDA loss to Rs 950 crore in FY24. The company aims to achieve a revenue of Rs 4,655 crore in FY24.

The financial report comes three weeks after the company transformed into a public company (Ola Electric Mobility Limited.) as it prepares for an Initial Public Offering (IPO) set for early 2024. It is reportedly working with Kotak Mahindra Capital and Goldman Sachs for the IPO process. 

Sales performance 

In FY23, Ola Electric sold 15 Lakhs units of electric vehicles (EVs), retaining the top spot in the market. The company anticipates its sales volume to reach 3 Lakhs in FY24 and further increase to 9 Lakhs Mn by FY25. Ola Electric's e-scooter registrations saw a 14% month-on-month increase in November, crossing 27,331 units.

Expansion and Investor Confidence

Ola Electric raised Rs 3,200 crore in a funding round in October, a mix of equity and debt, led by Temasek and the State Bank of India. The funds are earmarked for expanding Ola’s EV business and establishing India's first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. It also plans to launch electric motorcycles and cars and accelerate the construction of its Gigafactory. 

"We are committed towards developing core technologies in EVs and cells and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility. Our investors and lenders have shown deep faith in Ola’s vision, and we thank them for the constant support and encouragement," said Bhavish Aggarwal, Founder and CEO, Ola Electric.

The Indian electric vehicle market, valued at $1.45 billion in 2021, is projected to reach an impressive $113.99 billion by 2029, growing at a CAGR of 66.52% during the forecast period.

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