Ola Electric, the electric vehicle (EV) arm of Ola, has revealed its financial performance for the fiscal year ended March 2023 (FY23). Despite reporting consolidated revenue of Rs 2,782 crore, marking a remarkable 510% increase, the company’s net loss widened to Rs 1,472 crore, doubling from the Rs 784 crore reported in FY22. The financial statements, audited and shared with bankers and investors, disclosed that Ola Electric faced an EBITDA loss of Rs 1,318 crore in FY23, with total expenses surging to Rs 3,383 crore compared to Rs 1,240 crore in FY22.
While preparing for an Initial Public Offering (IPO), Ola Electric aims to achieve EBITDA profitability by FY25, targeting a figure of Rs 803 crore. The company anticipates reducing its EBITDA loss to Rs 950 crore in FY24 and projects revenue of Rs 4,655 crores for FY24. Additionally, Ola Electric forecasts sales of 0.3 million units in FY24 and 0.9 million units by FY25, with 0.15 million units of electric vehicles sold in FY23.
In a note to investors and bankers, Ola Electric emphasized its commitment to reaching EBITDA profitability by FY25, aiming for a 6.6% margin. This strategic focus aligns with the company’s IPO plans, set to materialize in early January 2024. The EV manufacturer has transformed itself into a public company as part of its IPO preparations and has enlisted Kotak Mahindra Capital and Goldman Sachs for the IPO.
CEO Bhavish Aggarwal expressed optimism about the FY23 financials, characterizing it as a strong revenue year and highlighting significant bottom-line improvements. FY22 was considered an investment year, and Ola Electric initiated sales in January 2022. The company is optimistic about the surprise elements in its financial performance, although specific forecasts for the year were not shared.
In FY22, Ola Electric experienced a substantial widening of losses, reaching Rs 784 crore, marking a 293% increase from the previous year’s loss of Rs 199 crore. The surge in expenses to Rs 1,240 crore contributed to the intensified losses. In FY22, the company reported consolidated revenue from operations of Rs 373 crore, representing a YoY increase of nearly 400 times. This significant boost in revenue was attributed to the commencement of two-wheeler sales in December 2021.
To support its growth plans, Ola Electric successfully closed a funding round on October 26, securing Rs 3,200 crore (approximately $380 million). The funding included a mix of debt and equity, with prominent investors led by Temasek and debt from the State Bank of India (SBI).
