Ola Electric raises US$100 million long term debt to fund Ola FutureFactory

Ola Electric and Bank of Baroda have signed the largest long-term debt financing agreement in the Indian EV industry. This 10-year debt of US$100 million is towards the funding and financial closure of Phase 1 of the Ola Futurefactory; Ola’s global manufacturing hub for its electric two-wheelers. The company had last December announced that it will invest Rs 2,400 crore to set up Phase 1 of the factory.

“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 & Group CEO, Ola.

“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 the Ola Futurefactory will put India on the global EV map. We are proud to be associated with them”, said Sanjiv Chadha, Managing Director & CEO, Bank of Baroda commenting on the partnership with Ola for their EV business.

About Ola FutureFactory

Ola is building its FutureFactory on Industry 4.0 principles. The Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu, India. Ola will use its own proprietary AI Engine and tech stack to deeply integrate into all its systems. The company also aims the system to continuously self-learn and optimise every aspect of the manufacturing process. This will provide unprecedented control, automation and quality to the entire operations; especially with Ola’s implementation of cyber-physical and advanced IoE systems.

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The factory has an initial annual capacity of 2 million units. At full capacity of 10 million vehicles annually it will be the world’s largest two-wheeler factory. It will also serve as the company’s global manufacturing hub for India and international markets across Europe, the UK, Latin America, Australia, and New Zealand. The country’s most automated mega-factory may have about 5,000 robots. It will also have automated guided vehicles in use once the factory is fully operational to its full capacity. Ola’s FutureFactory will also create 10,000 jobs.

The first phase of Ola Futurefactory is nearing completion shortly; following which production trials of the much-awaited Ola Scooter will commence.