Ola Electric targeting $1.5 billion sales this year, pre-subsidy cut document shows

economictimes.indiatimes.com:

Ola Electric expects revenue to quadruple to $1.5 billion this financial year and then double that again in two years, according to a document containing corporate projections and people briefed on the matter. The figures, however, pre-date surprise cuts by the federal government to e-scooter incentives in May. According to the document, which was prepared ahead of investor meetings for Ola's planned IPO worth up to $700 million and was reviewed by Reuters, the company is also targeting $220 million in operating profit for the year to end-March.

The $1.5 billion revenue target compares with a result of $335 million for the past financial year, two people briefed on the matter said, adding that there had been no change to Ola's internal estimates since the document was drawn up in April. Ola, which is backed by Japan's SoftBank Group and Singapore's Temasek, did not respond to repeated requests from Reuters for comment. Since it began sales in late 2021, Ola has become India's e-scooter market leader with a 32% share, competing with Ather Energy as well as companies like TVS Motor and Hero Electric.

It was valued at $5 billion last year and has raised nearly $800 million from investors since 2019.Incentives slashed The Indian government has said it wants electric variants to account for 70% of two-wheeler sales — which also include motorcycles — by 2030, a huge jump from 14% currently. But in May, it shocked the market by slashing e-scooter cash incentives without explanation, saying it would pay just up to 15% of the price before taxes. It had earlier pledged to pay up to 40%.