Indian Electric Vehicle (EV) manufacturer Ola Electric on Monday announced that it has raised $100 million in debt financing from Bank of Baroda.
“This 10-year debt of $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 said in a statement.
In December, Ola had announced that it will be investing Rs2,400 crore ($322 million) for setting up phase 1 of the factory. The Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu, India.
At full capacity of 10 million vehicles annually, it will be the world’s largest two-wheeler factory, the company claimed.
“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,” said Bhavish Aggarwal, Chairman & Group CEO, Ola.
The first phase of Ola Futurefactory is nearing completion, following which production trials of the Ola Scooter will commence, the company said. The Ola Scooter, which will be launched soon, will be manufactured at the Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.
In May, the company had announced the appointment of N Balachandar as chief human resources officer (CHRO) and Wayne Burgess, as the head of vehicle design for its entire product range, including scooters, bikes, cars, and more.