Ratan Tata invests in Ola Electric Mobility in personal capacity.
Ratan Tata’s investment in Ola Electric is a significant endorsement of the company’s approach to developing an electric mobility ecosystem.
Ola’s announcement :
Ola Electric Mobility announced that Ratan Tata, Chairman Emeritus of Tata Sons, has invested in the company as part of its Series A round of funding. This investment is in Ratan Tata’s personal capacity in the newly formed Electric Mobility company.
Tata is also an early investor in ANI Technologies Pvt Ltd, Ola’s parent company. Tata’s investment in Ola Electric is a significant endorsement of the company’s approach to developing an electric mobility ecosystem, including innovations in charging infrastructure, swapping models, and market-appropriate products.
Ola Electric is currently running several pilots involving charging solutions, battery swapping stations, and deploying vehicles across two, three and four-wheeler segments.
Investment details are still under wraps.
Ola Electric Mobility :
The company has a charter to develop platforms and infrastructure to make electric mobility a reality at scale.
Ola-backed Ola Electric Mobility, which develops solutions to make electric mobility viable at scale raised Rs.400 crore in its first round of investment led by several of Ola’s early investors, Tiger Global and Matrix India and others.
The fund raise announcement came just a few hours before the Union Cabinet announced the second phase of the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme.
Through FAME, the government is looking to achieve 30% electric mobility by 2030 and has an outlay of Rs.10,000 crore for a period of three years with effect from April 1, 2019.
Indian Market – Electric Vehicle :
Though the market for electric vehicles or EVs is expanding in India, appropriate business models are needed to help create synergy among stakeholders, and leverage their competence and expertise towards a common outcome.
When it comes to Ola Electric Mobility, it was initially established to enable Ola’s electric mobility pilot program in Nagpur. In 2018, Ola subsequently announced ‘Mission: Electric’ to bring 1 million electric vehicles on Indian roads by 2022.
It has identified charging as the first problem in electric mobility and is running several pilots to deploy electric vehicles and charging solutions, including battery swapping stations, electric two-wheeler and three-wheeler services, amongst others.
Raising money by Ola Electric Mobility :
The unit is named Ola Electric Mobility and is described as being an independent business that’s backed by Ola. TechCrunch understands Ola provided founding capital, and it has now been joined by a series of investors who have pumped Rs. 400 crore ($56 million) into Ola Electric. Notably, those backers include Tiger Global and Matrix India — two firms that were early investors in Ola itself.
Ola has taken steps to electrify its fleet — it pledged last year to add 10000 electric rickshaws to its fleet and has conducted other pilots with the goal of offering one million EVs by 2022 — but the challenge is such that it has spun out Ola Electric to go deeper into EVs.
Focus of Ola Electric Mobility :
The new Ola Electric Mobility company has pledged to focus on areas that include charging solutions, EV batteries and developing viable infrastructure that allows commercial EVs to operate at scale, according to an announcement.
In other words, the challenge of developing electric vehicles goes beyond being a “ride-hailing problem” and that is why Ola Electric has been formed and is being capitalized independently of Ola.
Ratan Tata :
Ratan Naval Tata, (born 28 December 1937) is an industrialist, businessman, investor, philanthropist, and a former chairman of Tata Sons who serves as its chairman emeritus. He was also chairman of Tata Group, from 1991 to 2012, and again, as interim chairman, from October 2016 through February 2017, and continues to head its charitable trusts.
He is the recipient of two of the highest civilian awards of India – Padma Vibhushan (2008) and Padma Bhushan (2000). He is well-known for his business ethics and philanthropy
Ratan Tata, said, “The electric vehicle ecosystem is evolving dramatically every day, and I believe Ola Electric will play a key role in its growth and development. I have always admired the vision of Bhavish Aggarwal and I’m confident that this will be part of yet another important strategic move into this new business area.”
Bhavish Aggarwal :
Bhavish Aggarwal (born 28 August 1985) is an Indian entrepreneur and co-founder of Ola Cabs. Aggarwal was born in Ludhiana and grew up in Afghanistan and the UK.
He completed a bachelor’s degree in computer science and engineering at Indian Institute of Technology, Bombay in 2008. He started his career with Microsoft Research India as a Research Intern and later got reinstated as an Assistant Researcher.
He began his career with Microsoft, where he worked for two years, filed two patents and published three papers in international journals. In January 2011 he co-founded Ola Cabs with Ankit Bhati in Mumbai. In 2015 Aggarwal and Bhati were the youngest to be included in that year’s list of richest Indians.
Ratan Tata invests an undisclosed amount in Ola Electric :
“Tata has been a mentor and an inspiration in shaping Ola’s journey over the years,” said Bhavish Aggarwal, co-founder and CEO of Ola.
Ratan Tata, Chairman Emeritus of Tata Sons, has invested an undisclosed amount in Ola Electric Mobility (OEM), the electric vehicles project of the ride hailing app. This investment, which is part of OEM’s series A round of funding, is in Ratan Tata’s personal capacity, the Bengaluru-based company said in a statement.
Tata is also an early investor in ANI Technologies, Ola’s parent company. Bhavish Aggarwal, co-founder and CEO of Ola said Tata has been a mentor to him personally, and an inspiration in shaping Ola’s journey over the years.
EV Four Wheelers :
The Indian electric vehicle segment is currently ripe for disruption. With the continuous push from the government to ensure 30% electric mobility in India by 2030, both local and foreign companies are making their way into this opportunity. Earlier this week, UK-based electric bike company and lifestyle brand GoZero Mobility also announced plans to enter India.
Of the 2.6 Lakh electric vehicles sold in India as of December 2018 (according to FAME India report) a majority 59% of sales came from two-wheelers. Two-wheeler electric vehicles like Ather Energy, Emflux Motors, Hero Electric have already tasted success in this segment.
Others like Maruti Suzuki India Ltd, Toyota Motor Corp and Nissan Motor Co are testing the ground to launch two-wheeler electric vehicles in the country, some as early as 2020.
Can Ola Electric Mobility deliver on the opportunity? Only time will tell. For now, it has cash in hand, investors who believe in this business and a market with a big opportunity.
To know more about Ola investment click on the link https://www.bangalorean.com/blog/business/sachin-bansal-filpkart-co-founder-ola-cabs/