Ola Electric's FY2022-23 Financial Performance Revealed Ahead of IPO: Operating Loss and Revenue Miss

As Ola Electric gears up for its much-anticipated Initial Public Offering (IPO) with a staggering target of up to USD 700 million, fresh details about the company's financial performance in the fiscal year 2022-23 have come to light. Notably, these figures were not previously disclosed or filed with Indian authorities, as the company enjoys time until September to submit its previous year's earnings.

Operating Loss and Revenue Fall Short of Projections

India's largest e-scooter manufacturer, Ola Electric, faced headwinds in its financial performance during the last fiscal year ending in March. According to three sources cited by Reuters, the company recorded an operating loss of USD 136 million on a revenue of USD 335 million. This marked a notable miss of its publicly disclosed revenue goal.

Delayed Reporting and SoftBank's Backing

The specific FY2022-23 loss numbers for SoftBank-backed Ola Electric were not previously revealed or filed with Indian authorities, taking advantage of the deadline until September to report the previous year's earnings.

Also Read: Ola S1 Air sold 1000 Units in Just an Hour

Impact on IPO Preparations

Ola Electric's financial results have come under scrutiny, especially given its earlier statements regarding its growth trajectory. In June of the previous year, the company had declared its intention to surpass a USD 1 billion run rate by the end of FY2022-23, but it fell short of this ambitious projection.

E-scooter Sales and Market Leadership

Throughout its first full year of operations, Ola Electric achieved notable milestones, including the sale of over 150,000 electric scooters. In March, the final month of FY2022-23, the company sold about 21,400 electric scooters. Moreover, Ola Electric has emerged as the market leader in India's e-scooter segment, capturing an impressive 32% share, competing with rivals like Ather Energy, TVS Motor, and Hero Electric.

Investor Confidence and Expansion Plans

Despite the challenges posed by the reduced government incentives on e-scooters in May, Ola Electric remains confident in its prospects. The company is eyeing operational profitability this year, which holds significant weight for potential IPO investors. Its existing investors express optimism in Ola Electric's rapid rise to market leadership.

World's Largest 2-Wheeler Factory

Ola Electric manufactures its e-scooters at its sprawling facility in the southern state of Tamil Nadu, boasting the title of "the world's largest 2-wheeler factory." With the capacity to produce 10 million units annually, the company has been actively investing hundreds of millions of dollars in expanding both the factory and service centres.

Conclusion:

As Ola Electric prepares to go public with its IPO aspirations, the disclosure of its financial performance for FY2022-23 holds significant importance. While the company faced challenges in achieving its revenue targets, investor confidence and market leadership in the e-scooter segment continue to drive optimism.

As the industry landscape evolves, Ola Electric remains focused on its expansion plans, aiming to further solidify its position in India's fast-growing electric mobility market.