Ola Electric Mobility has lately been very active in expanding its electric vehicle ride-sharing service across India. To propel these efforts further, Pawan Munjal, chairman of Hero MotoCorp, has now invested about $1 million (~Rs 7 crore 41 lakh) in Ola Electric Mobility through his family trust.
The new investment by Pawan Munjal comes at a time when Hero MotoCorp as a firm is also looking to foray into the alternative mobility solutions in the country. Back in February this year, the company announced its plans to invest up to Rs 10,000 crore in the?next 5-7 years for coming up with new products, alternate mobility solutions, manufacturing facilities, network expansion and brand building. The crux of the investment is to retain the company's market leadership position in India while also strengthening its presence overseas.
As for the recent deal, Pawan Munjal Family Trust invested $1 million into Ola Electric and in return has been allotted 18 preference shares of Rs 10 face value each. The total premium for these shares stands at Rs 39,87,608 per share (around $54,093 apiece).
The new funding for Ola Electric comes within a year of it procuring a hefty investment of Rs 400 crore from several of Ola¡¯s early investors, including the likes of Tiger Global, Matrix India and others. The Rs 400 crore funding in March last year formed the first round of funding for the electric mobility arm of Ola.
The ultimate goal for the company, as announced by it back in April 2018, is to bring one million Electric Vehicles (EV) on the road by 2021. This would include electric cycle rickshaws to ¡®shuttles¡¯ as well as other modes of last-mile transport. Under the ¡°Mission: Electric¡±, efforts towards the objective kickstarted in Nagpur in 2017.
The company has come a long way since then, now operating in multiple cities across India. Recently in a team building mode, Ola Electric also appointed BVR Subbu as a member of the company¡¯s Board of Directors in November last year. With the focus on expanding its operations further, it is likely to invest the new-found funds into procuring more electric vehicles and scaling to new cities in and outside India.