Ola’s rival Ather Energy to set up a second factory

Flush with the success of its 450X and 450 Plus scooters, Hero MotoCorp’s Pawan Munjal backed startup Ather Energy on weekday aforesaid it’s likely to invest in a second manufacturing facility within the country which is able to take its overall capability from 120,000 to 400,000 units.

The announcement comes within the backcloth of Bhavish Aggarwal backed Ola Electric’s most hyped although delayed entry into the quick growing electrical 2 wheeler market in India. Ola has plans to line up a way larger ten million unit per year facility however is troubled to build and is running delayed.

On the opposite hand, incumbents as well as Ather have registered spectacular growth within the previous few months as high value of gasoline and multiple incentives from central and state governments have acted as sturdy tailwinds for electrical quality.

Ather has been registering two hundredth growth on sales month-on-month over the past year and recorded its best ever sales in the month of October 2021. It crossed $100 million revenue run rate throughout the month.

“The electric vehicle demand has been doping up across the country, and customers are coming back in expecting electrical scooters to wow them.

This client expectation is why our 450 series of electrical scooters – the 450X and 450 plus is seeing large demand because it is the best electric scooter in the country these days,” aforesaid Tarun Mehta, Co-Founder & chief executive officer, Ather Energy. “Our expertise centres are scaling up a pace, and our retail footprint is ready to grow by sixfold within the coming quarters. So, Within 10 months of gap our current facility, We discover ourselves already in operation at full capability.

The second plant is likely to be prepared in 2022. With this capability growth, Ather is well on its way to turning into the country’s largest electric vehicle producer by next year.”

The company’s second plant also will return up within the same location–Hosur, as its 1st that went on stream earlier this year.

With this, its additional production facility can go up to 400,000 units per year. In commercial enterprise 2021, around 150,000 electrical 2 wheelers were oversubscribed within the country. Estimates recommend the quantity can double this commercial enterprise.

Ather has reaped the good thing about being able to capitalise on the demand, one thing that Ola appears to be missing out on.

In October, Ather registered its best-ever monthly sales numbers, registering 12-fold growth over last year. It has recorded a 3X increase in walk-ins, internet inquiries and take a look at rides from April-October 2021 and a 4X growth in vehicle booking within the amount.

In other terms, Ather claims it’s already the biggest electric vehicle maker in its phase. It’s one thing that Ola can sure need to check once its problems are sorted and also the S1 and S1 execs begin reaching their customers.

Apart from the electric vehicle producing, the Hosur facility also will specialize in lithium-ion battery producing. It’s plans to strengthen its retail operations likewise by increasing to new markets–around one hundred and fifty expertise Centers in one hundred cities by March 2023.

Ola S1 And S1 Pro Test Ride To Be Available For All, Test Ride Facility Will Be Expanded To 1000+ Cities

Ola S1 And S1 Pro Test Ride To Be Available For All, Test Ride Facility Will Be Expanded To 1000+ Cities

Ola Electric has announced that it will be expanding the number of test ride facilities it offers around the nation. On Saturday, Ola Electric, a manufacturer of electric vehicles, said that it had increased the number of facilities for customers to test-ride its Ola S1 and S1 Pro scooters. Ola electric is looking forward to expanding its test ride network by 1,000 test ride locations to assure that a maximum number of people have the chance to have their hands on the S1 and S1 Pro electric scooters.

In the beginning, customers who have purchased or reserved either of the Ola S1 or S1 Pro electric scooters will have the privilege to test-ride the electric scooters, according to the business.

On November 10, Ola began offering test rides in Bengaluru, Delhi, Ahmedabad, and Kolkata. On November 19, the company expanded its service to include five more cities: Chennai, Hyderabad, Kochi, Mumbai, and Pune.

Also Read: Ola pilots 15-minute grocery delivery service in Bengaluru

Because of the overwhelming reaction to Ola S1 and S1 Pro electric scooters, Ola Electrics ensures that its test ride facility is expanded to the broadest possible number of cities, providing possible exposure to its electric scooters. Ola Electrics has set a goal to make test rides available to the general public by the 15th of this month. The enormous response to Ola’s electric scooters, according to the company, served as the source of motivation for taking this step.

Ola’s Chief Business Officer, Arun Sirdeshmukh, is pleased with the positive reception to the company’s electric scooters. He emphasised his delight by stating that thousands of consumers are interested in testing the Ola scooters daily. They seem to be impressed by the best-in-class design, performance, technology, and ride quality that the Ola S1 and S1 Pro scooters provide.

The firm will significantly increase the number of test rides facilities to customers during the next few weeks, expanding to over 1,000 cities and towns throughout India by mid-December to ensure that every consumer has access to test rides. “This is the most rapid nationwide scale-up of test rides in history, and it represents a revolution in the automobile industry, made possible by our direct-to-consumer approach,” Arun Sirdeshmukh said in a statement.

Also Read: Ola sets aside Rs.250 crore for grocery delivery business: Report

According to the announcement, customer test rides will begin rolling out in the next batch of cities on November 27 in Surat, Thiruvananthapuram, Kozhikode, Visakhapatnam, Vijayawada, Coimbatore, Vadodara, Bhubaneswar, Tiruppur, Jaipur, and Nagpur.

In August of this year, Ola Electric debuted two electric scooters, the Ola S1 and S1 Pro. Ola said in September that sales of its first electric scooter had exceeded Rs 1,100 crore in only two days. Many believe the below reasons play a seminal role in eliciting such huge attention and sell.

The Ola S1 and S1 Pro Offer Affordable Mileage

Ola Electric makes a huge claim about its scooters capable of covering a long distance on a single charge, which many people believe to be critical when considering whether or not to purchase an electric vehicle. While the S1 model claims to be able to go 121 kilometres before having to be recharged, the more costly S1 Pro boasts of being able to travel around 180 kilometres before needing to be recharged. However, the thing to be noted here is we still lack suitable infrastructure for electric vehicles.

Ola S1 and S1 Pro  Specifications

The Ola Electric S1 scooter’s goal is to strike a balance between riding performance and a variety of features, some of which are industry firsts. In addition to three riding modes – Normal, Sport, and Hyper – as well as rapid acceleration and a steady high-speed ride, there are additional features such as a giant display screen with an Android-based operating system, app control, speakers, a USB connector for charging, and so on.

Ola S1 and S1 Pro: How Much Do They Cost?

The Ola S1 electric scooter comes in two variants: the S1 and the S1 Pro. The S1 is the more affordable of the two, priced at Rs 1 Lakh, while the latter variant comes with a price tag of Rs 1.30 Lakh. (ex-showroom). Both the scooters come in the price range of most of the petrol run scooters.

Ola S1 and S1 Pro pricing in various states

Also Read: Ola CFO Saurabh & COO Porwal to exit company ahead of IPO

4 big IPOs to look out for in 2022

IPOs (initial public offerings) have generated a lot of buzz in recent months. non-public businesses and startups looked to profit on the positive capitalist sentiment within the market.
Over forty companies launched their IPOs in 2021 (until September) raising over ₹700 bn.
Around thirty more are probably to come out with their IPOs within the October-December quarter as well as fintech big Paytm, and insurtech firm Policybazaar.

Most of those IPOs are profitable for investors and are trading on top of their issue value.

For instance, the stock of home health care and wellbeing product maker Nureca has surged over 300 percent to  ₹1,738 from its issue value of  ₹400.

The stock of Paras Defence has rallied over 380% to  ₹846 from its issue value of  ₹175 per share.

If the market momentum continues and therefore the liquidity remains high, then the remaining IPOs may witness strong demand.

This momentum is predicted to be carried into the New Year as well. Here are four IPOs to appear forward to in 2022.

#1 life insurance Corporation of India (LIC)

State-owned life insurance Corporation of India is anticipated to come out with its IPO sometime within the fourth quarter of the fiscal year 2021-22.

The ipo is expected to be India’s biggest-ever initial public offering with the govt. selling a stake of 5-10% within the insurance company.

The listing are going to be crucial for the govt. to fulfill its withdrawal target. It’s estimated that this ipo would fetch the government the govt. bn and ₹800 bn.

LIC is India’s largest life insurer, with substantial money reserves and a long history of trust.

It’s additionally the foremost profitable company owned by the govt.. consistent with a media report, the insurer created a stock market profit of around ₹100 bn just between april and June 2021.

LIC additionally features a large market share of 49.8%. The remaining twenty three private companies like HDFC Life and ICICI prudential life insurance have the remaining 50.2% share.

As per media reports, a ministerial panel dubbed, the ‘alternative mechanism on strategic divestment’, can select the size of the stake to be sold . It’s probably it’ll not be over 10 percent.

Other details like the value band, the grey market premium, exact issue size and face price of the IPO are yet to be disclosed. it’s also unclear what the precise dates of the IPO are going to be as of now.

That apart, the govt. is considering a proposal for foreign investors to own as much as twenty percent in LIC, which might enable them to participate within the nation’s biggest IPO.

It’s discussing a plan to amend foreign direct investment (FDI) rules in order that investors will acquire the stake without the government’s approval under the so-called automatic route.

No matter what happens, this can be this is be the defining IPO event of 2022.

#2 Byju’s

India’s most beneficial startup, online education supplier Byju’s, is also in talks to lift money via an IPO next year.

It plans to raise between US$400 m to US$600 m.

The Bangalore-headquartered company is predicted to shut its pre-IPO fundraise during a few weeks at a valuation of about US$21 bn. It’s probably to be split roughly evenly between equity and debt.

Byju’s aims to file its initial IPO documents as early because the second quarter of next year, shortly after the close of its fiscal year in March.

It had previously looked at a timeline of twelve to twenty four months after the fundraise.

As per reports, the startup and its bankers are discussing a valuation of US$40 bn to US$50 bn. Byju’s was valued at US$18 bn in its latest round last month, up from US$16.5 bn in june 2021.

The online education startup has prominent international investors as well as Facebook founder Mark Zuckerberg’s Chan-Zuckerberg Initiative, Naspers, Tiger global Management, and private equity giant Silver Lake Management.

Its bankers include Morgan Stanley, Citigroup, and JPMorgan Chase.

Byju’s has been on an acquisition binge in the past year, getting startups offering coding lessons, professional learning courses, and check preparation classes for competitive Indian exams.

The company added forty five m students to its platform in India last year. It had more than one hundred m users on the app in July 2021. Of these, 6.5 m were paid subscribers.

The company said that it’s targeting ₹100 bn (US$1.4 bn) revenue within the fiscal year 2022, with a twenty percent gross margin.

#3 Ola

Ride-hailing an ola is additionally exploring a public an early next year with associate aim to raise a minimum of US$1.5-2 bn.

This values the Bengaluru-based unicorn at US$12-14 bn.

The company can raise half the capital through a primary issue whereas the remainder the rest through a suggestion for sale (OFS).

Unlike most startups, ola is profitable.

The company reported a standalone operative profit of ₹898 m for the twelvemonth 2021 versus a loss of ₹6.1 bn a year ago.

Despite revenue down sixty fifth from a year ago due to the pandemic, ola turned a profit, helped by aggressive value cuts and a reduction within the workforce.

Earlier last month, ola raised US$500 m in what could be termed a pre-IPO round. private equity companies, Warburg pincus and Temasek Holdings invested with, along with 2 others.

Ola additionally recently declared the acquisition of GeoSpoc, a six-year-old Pune-based geospatial company. With GeoSpoc, the company is looking at building ensuing generation of location technology for the world.

#4 Delhivery

Adding to the list of tech firms that plan to list next year is logistics company Delhivery.

The company plans to raise US$400-US$500 m via its IPO.

It has already filed its draft red herring prospectus (DRHP) with the market regulator.

The issue size of the IPO is predicted to be around ₹74.6 bn of that ₹50 bn are going to be via a recent issue and ₹24.6 bn from an offer for sale.

Existing shareholders that conceive to sell their stake are China Momentum Fund (Deli CMF) – ₹4 bn, carlyle – ₹9.2 bn, SoftBank – ₹7.5 bn, and Times web – ₹3.3 bn.

The likely valuation expected by the corporate via the issue is around US$5.5 bn.

The company plans to use the takings for funding organic growth initiatives and for funding inorganic growth through acquisitions and alternative strategic initiatives.

Delhivery recently signed an agreement to acquire a 100 percent stake in rival express logistics player Spoton logistics.

The company additionally issued bonus shares to its shareholders through a resolution passed at its Extraordinary General Meeting (EGM) persevered twenty nine September 2021.

The IPO market is booming in India will the trend continue?

Following the recent correction, the Indian stock market is still currently trading high and IPOs are attracting some wild valuations.

Given the abounding liquidity, the market regulator easing listing procedures and overall optimistic sentiments, the initial public offering craze is understandable.

Data suggests that companies raised funds to the tune of US$4.6 bn from IPOs last year. many believe this amount are going to be easily surpassed in 2021.

As corporations line up to raise funds from the market amid high valuations, investors need to think about several factors before investing their money in an IPO.

If you’re investing in an IPO, weigh in all the positive and negative factors affecting the corporate.

Ola pilots 15-minute grocery delivery service in Bengaluru

Ola, the ride-hailing startup, has started handling a fast delivery service for product like groceries, pet care products, and personal care products in Bengaluru, marking its entry into the Quick commerce market. The aim of this startup is to deliver products within 15 minutes or less.

According to a report by PTI, the cab service unicorn is presently running a pilot of its ‘Ola Store’ in an exceedingly few key parts of town, with plans to extend to different cities within the following months.

The new service is accessible via the Ola app, however it’s solely offered to a restricted variety of customers. Customers will order from a variety of around 2,000 merchandise, which can be delivered via Ola’s “strategically” settled dark stores.

A dark store could be a facility where an e-commerce operator will fulfill orders received online. This is often the IPO-bound startup’s second foray into the extremely competitive quick commerce sector, that is presently dominated by tech startups like Swiggy’s Instamart, Grofers, Dunzo, and has seen new competitors like the conventional supermarket chain Big Bazaar.

In recent months, the thought of fast commerce has gained traction especially in India, with each company exploring solutions to reduce delivery timelines. Dunzo, a Bengaluru-based hyperlocal delivery service, has launched “Dunzo Daily,” that guarantees to deliver essential things within nineteen minutes. The startup is currently working on opening 250 dark stores around the country so as to expand its footprint in 700 neighborhoods.

Swiggy, another food delivery startup, has invaded the market with its Instamart offering. The startup claims to deliver groceries within 15-30 minutes, whereas Grofers, a supermarket delivery platform, has conjointly introduced 10-minute grocery delivery across 10 cities, including with Bengaluru, Mumbai, and Delhi, among others.

According to estimates from research firm Redseer, the Quick commerce market, where delivery takes but less than an hour, is presently valued at $0.3 billion and is anticipated to grow to $5 billion in four years. whereas Ola and its rival Uber didn’t failed to discover similar services 5 to 6 years ago, sources accustomed to the event expressed that Ola’s new strategy to the market won’t be restricted to groceries alone.

Mumbai-based Zepto, earlier had raised $60 million in an exceeding Series A round led by Nexus, Glade Brook Capital, and Y-Combinator amongst others. The firm was founded this year by a 19-year-old Stanford University dropouts Aadit Palicha and Kaivalya Vohra, claims to deliver groceries within ten minutes. The firm is presently operating in Delhi, Bengaluru, Chennai, and Gurugram.

It is noted that Softbank-backed Ola’s entry into the Quick market sector comes simply months when the firm launched Ola Cars, its used automobile marketplace, a sector that’s dominated by different new-age brands like Cars24 and Droom.

Ola sets aside Rs.250 crore for grocery delivery business: Report

We all understand that olla may be a cab company however many of us do not know that within the year 2015, olla launched an internet food market in Bengaluru and a food delivery app in March an equivalent year. They planned to use its cabs and drivers to deliver groceries, between nine am and eleven pm. once around 9 months, it shut each olla Store and olla Foods with none detail.

Nearly once 5 years, olla is prepared to dive into the hyper-competitive grocery delivery area once more. The market is already controlled by Grofers, Swiggy and Dunzo which supply delivery of essential product in around 10-30 minutes and olla plans to fight a battle with these firms.

The founding father of the corporate Bhavish Aggarwal is quickly building associate degree electronic two-wheeler business via olla electrical.

The company wants a various portfolio of companies that goes on the far side cab aggregation and rides. this could be the explanation that they’re making an attempt to revive its on-line food and grocery delivery businesses once the pandemic.

Ola is designing and aims to achieve an equivalent quantity of success that alternative food delivery apps like Swiggy has had with Instamart. It wont to operate as a grocery marketplace wherever Swiggy wont to combination stores whereas Instamart currently features a a lot of economical dark store model and stocking necessities.

According to reports, ola has already unbroken a thumping budget of Rs 250 large integer for the grocery delivery business.

They had planned to line up around three hundred dark stores for grocery and convenience delivery, simply previous its $2 billion commerce. the corporate currently has its own fifty five cloud kitchens and plans to expand the quantity.

The company plans to clock a revenue run rate of around Rs a hundred large integer per month before the commerce takes its place.

Ola CFO Saurabh & COO Porwal to exit company ahead of IPO

Ola’s chief money handler Swayam Saurabh associate degreed chief operating officer Gaurav Porwal square measure exiting the company whereas the SoftBank-backed company is progressing to select AN initial public providing.

In an indoor email sent to the workers recently, Bhavish Aggarwal same he was making changes to the organisation with Vinay A Bhopatkar taking any responsibilities for the driving force and supply system of the company’s quality platform. Anshul Khandelwal, United Nations agency leads promoting, will face up to the additional responsibility of drive revenue.

“Gaurav (Porwal), United Nations agency has run the standard business for the last year and designed a sturdy foundation throughout troublesome times, ar deed paper to pursue totally different interests,” said Aggarwal.

Arun Kumar G R, Ola’s cluster business executive will still run the finance perform across the cluster, and each one the key finance leaders at paper will presently report on to him. “Swayam Saurabh ar moving on to pursue totally different opportunities in amount of your time. i would like him absolutely the best for his next endeavour,” said Aggarwal.

Aggarwal jointly same Arun Sirdeshmukh will still be the chief operational officer, Ola Cars, the firm’s vehicle commerce business.

While Saurabh had joined paper this year, Porwal joined the company in 2019. Early this year, Porwal took over as a result of the COO once Pranay Jivrajka, a begin partner of paper, quit the ride-hailing company to launch his own startup. Another paper government Puneet Bhirani left the company in April this year to affix Byju’s.

There ar totally different high-profile exits from paper recently. Ankit Jain, the co-founder of paper electrical had exited last year in conjunction with Anand monarch, another co-founder of paper electrical. Ola’s Australian administrator Simon Smith, United Nations agency had joined the firm in 2018, left in New Style calendar month 2020. Nitin Gupta, chief operational officer of paper cash Services, and Sanjay Bhan, chief business officer, quit last year.