Ola Electric Lowers Valuation Amid Market Realities

• Indian stock markets are rallying but cautious about high valuations for loss-making startups, including Ola Electric.
• Ola Electric has reduced its valuation expectations from $8 billion to $4.5 billion pre-money, needing cash for manufacturing expansion and battery cell factory setup.
• In early 2023, Ola Electric raised $126 million in equity funding, less than half the intended $300 million, amid a late-stage financing freeze.
• The company has significant debt, with Rs 2,155 crore in loans, and plans to use IPO funds to ease this burden.
• Market dynamics have shifted for Indian unicorns, with investors now more cautious, impacting valuations and IPO strategies.

Source: The Arc