Electric two-wheeler company Ola Electric and e-commerce firm FirstCry, both recipients of investment from SoftBank, are gearing up to submit their draft IPO papers by the upcoming week, according to sources familiar with the matter.
In November, SoftBank had demonstrated confidence in the valuation of both companies, among others in its portfolio, as it marked up their valuations ahead of the impending IPOs.
FirstCry’s IPO Plans and Recent Investments
FirstCry is reportedly seeking to raise $500 million, with 60% of the funds allocated to the offer for sale (OFS) component and the remainder designated for the primary offering. Notably, FirstCry is expected to delay its listing until after the general election in 2024.
Meanwhile, Ola Electric has already initiated roadshows with both domestic and international investors. Recent reports reveal significant share acquisitions by Ranjan Pai’s MEMG Family Office, Harsh Mariwala’s Sharrp Ventures, and Hemendra Kothari’s DSP family office, amounting to Rs 435 crore in FirstCry.
Ola Electric’s IPO Plans and Funding Round
Moneycontrol previously reported that Ola Electric has enlisted Kotak Mahindra Capital and Goldman Sachs for its IPO, scheduled for early 2024. The IPO is anticipated to comprise both primary and secondary share offerings. In a recent development, Ola Electric closed a funding round amounting to Rs 3,200 crore (approximately $380 million), encompassing a combination of debt and equity from prominent investors led by Temasek and debt from the State Bank of India (SBI).
The funds secured from the IPO and pre-IPO rounds are earmarked for expanding Ola’s electric vehicle business and establishing India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. Ola Electric’s CEO, Bhavish Aggarwal, envisions a manufacturing capacity increase from the current 1 million to 2 million units per annum in the next six to nine months, with an ultimate goal of expanding to 10 million units per annum.
Despite Ola Electric’s robust consolidated revenue of Rs 2,782 crore, representing a nearly 510% increase in FY23, the net loss widened to Rs 1,472 crore, double the figure reported in FY22. Ola Electric aims for an Ebitda profitability of Rs 803 crore in FY25, with an anticipated Ebitda loss reduction to Rs 950 crore in FY24. The company projects a revenue of Rs 4,655 crores in FY24.
