Ola Electric Mobility Pvt. is in line for an initial public offering sooner than its founder previously imagined, reflecting the Indian startup’s whirlwind pace of growth since it started selling electric scooters in late 2021.

(we will update the dates… one by one… on this post… when it becomes public)

“I thought it would take me…

four to six years of revenue to go public,” Founder and Chief Executive Officer Bhavish Aggarwal said in an interview while sipping iced Vietnamese coffee in New Delhi’s bustling Connaught Place.

“Now I can feel that it will be much earlier. Ola Electric has grown and matured faster than I had initially planned because the market response has been very strong.”

The company, whose backers include SoftBank Group Corp. and Tiger Global Management, has become leader in India’s electric-scooter market with a 38% share. It has sold more than 239,000 electric scooters since December 2021, according to data from the Society of Manufacturers of Electric Vehicles.

The initial demand came from first-time scooter buyers and most of Ola Electric’s customers are now fully-fledged converts, the Ola Electric owner informed during the interaction. He also has an ambitious plan to expand the electric mobile by introducing motorbikes by the end of the year and by next year, a battery-powered car, though the timelines may change.

The Ola Electric founder also informed that he is considering exporting scooters into Southeast Asia, Europe and Latin America, a proposition that got stopped because demand in India was strong.

PLEASE NOTE that OLA CABS & OLA ELECTRIC are two different companies of Bhavesh Agrawal. Ola Cabs is not very profitable while Ola Electric has got great response from the public.

Aggarwal is building a 115-acre battery factory in southern India, pitting him against billionaire Mukesh Ambani’s Reliance Industries Ltd., with the aim of making lithium-ion cells primarily for Ola Electric vehicles, as well as potentially offering energy storage and home energy solutions.

HOW COMMON MAN CAN BENEFIT FROM EV REVOLUTION IN INDIA?

Startup companies like OLA, Ather & Bounce are growing at a very fast pace, and to grow more they need more funds to invest in more land, men & machinery.

For this they plan to issue an IPO … initial public offering … to take accept investment from the public. They give shares in return for your money. A share can have value of Rs 10, Rs 100 or Rs 1,000, Rs 5,000 etc.

By buying the shares you become a part owner of that company. The more shares of that company you buy the more influence you have over that company. Sometimes hostile takeover happens by buying more shares… and to prevent such takeovers promoters (owners) prefer to keep majority of the shares with them.

In return for your investment the company will give a share of profit in the form of dividend or bonus shares or both. But the best part of such fast growing companies is that the price of shares increase/decreases very fast.

The shares of good companies have always increased over time. The speed of share price increase depending upon the quality of the product & demand for it in the market.

These companies will offer the shares for IPO starting from this year. So you will have to keep checking… either this site… or stock market site… or Demat Account for IPO update.

YOU WILL NEED DEMAT ACCOUNT TO APPLY FOR IPO. If you invest 1 Lakh in good EV companies there is a good chance that your investment could become 50 Lakhs to 1 Cr in 10 yrs.

(Therefore make sure you have applied for Demat Account. Zerodha Demat Account application takes just 15 minutes with Aadhar, Pan, MobilePhone linked to Aadhar, pen & paper from your home/office). Most digital banks have a button to apply for Demat. But Zerodha is one of the best and their Kite App is great too.

As Indian Government is expanding its ROADS NETWORK at a blistering pace… the industry that will profit MOST from it will be the Automobile Industry… and in it the electric 2wheeler category could grow the fastest.

Most of the Automobile companies in India have come into existence during the BRITISH ERA. After independence they enjoyed their clout with the politicians during the License Raj where competing against them was almost impossible for new companies.

Almost all of these companies have preferred to stay inferior to their western counterparts with whom they have some or the other “technological tie-up”. Some of the standards of these companies are not only not on par with international standards but are even inferior to the standards set by the Indian Government… but still they succeeded. They refuse to change … they refuse to innovate… yet they stayed profitable.

BUT NOW THINGS ARE CHANGING… FAST… most of the Petrol 2 Wheeler sales have declined because they refused to innovate and embrace new technology (EVs). Two companies pretend to innovate but refused to manufacture & sell eScooters in bulk.

But rank new companies formed yesterday were outselling them by the thousands.

The new eScooter companies like Ather, Ola & Bounce have set a very high standard for themselves and are much better than scooter or electric scooters of international companies (in their price range).

Therefore these new EV companies can grow much bigger and much faster than these established non-innovative petrol 2-Wheeler makers. A lot will also depend on what course of actions they will take… whether they will innovate with new products or stick to selling the same product? Pivot based on the market conditions or refuse to pivot based on the market conditions.

Thus these coming months will offer once in a lifetime opportunity to apply for shares on the best electric scooter companies… which are… for a change … MADE IN INDIA.

So READY, STEADY, GO … get your Demat Account opened… line up your cash… and apply for the IPO.

But before you do that forward this to your friend/relative who is interested/investing in Stock Market.