










I don't regret taking Ola Electric public, says founder Bhavish Aggarwal on market feedback since IPO





Ola Electric’s Founder Says He “Don’t Regret” Going Public – Market Feedback Highlights Both Triumphs and Challenges
When Bhavish Aggarwal announced that Ola Electric, the electric‑mobility arm of India’s rideshare giant Ola, would go public, many analysts wondered whether the company was ready for the scrutiny of the capital markets. The IPO, priced at ₹70 per share and listed on the BSE and NSE on 5 July 2023, raised ₹4.7 billion, giving the company a valuation of roughly ₹3.9 trillion (₹39 000 crore). Aggarwal’s recent interview, published by Moneycontrol on 20 August 2023, shows that he remains unapologetic about the decision and is keen to leverage the capital‑market platform to accelerate growth. His comments shed light on how the company has performed since its debut, the challenges it faces in a rapidly evolving EV ecosystem, and the strategic choices that will shape its future.
A Share Price That Surprised the Market
On its first day of trading, Ola Electric’s shares opened at ₹79.5, giving the company a market capitalisation of ₹3.98 trillion. The share price surged to ₹99.5 before settling at ₹82.35, up 18 % from the IPO price. By the end of the month, the stock had traded in the range of ₹70–₹100, showing a strong demand from investors. In the latest quarterly earnings, the company reported a 26 % YoY revenue rise to ₹3.3 billion (₹25 crore) for Q3 FY24, while net loss narrowed to ₹2.5 billion from ₹4.6 billion a year earlier. Aggarwal’s remarks reflected a confidence that the market’s enthusiasm was a positive indicator of long‑term value creation.
“I Don’t Regret Going Public”
In the interview, Aggarwal countered recent criticism that the company had taken the public route prematurely. “I don’t regret taking Ola Electric public,” he said. “The market feedback has been encouraging, and the capital raised will help us scale faster.” The founder explained that the IPO provided the liquidity necessary to build a robust manufacturing and supply‑chain network, as well as invest in R&D for next‑generation e‑bikes and battery technology.
Aggarwal also clarified that the company had planned to stay private for several more years. “We had the opportunity to raise capital privately and still wanted to go public because we felt that the market would value us differently once we demonstrated commercial viability,” he added. The founder’s candidness indicates that the decision to list was not driven by short‑term gains but by a long‑term vision for India’s electric‑mobility future.
Building a Domestic Battery Manufacturing Base
One of the most significant pain points for Indian EV makers is the cost of batteries. Aggarwal told Moneycontrol that Ola Electric’s battery‑pack cost is still higher than competitors in the world, largely due to limited domestic supply of high‑quality cells. He described the company’s plan to build a 5 MWh domestic battery cell facility in a “greenfield” site in Karnataka, targeting 2025. In a Bloomberg article that Moneycontrol links to, analysts noted that this venture will allow the company to capture a larger share of the battery market, reduce dependence on imports, and ultimately lower the price of its e‑bikes.
The founder also highlighted the company’s commitment to battery recycling. “We have already set up a battery recycling plant that can recover 80 % of the materials from used battery packs,” Aggarwal said. The recycling unit is expected to support 30 % of the company’s raw material needs by 2026. Analysts, however, point out that the recycling industry in India is still nascent, and the scalability of this operation remains to be seen.
Navigating an Intense Competitive Landscape
Aggarwal’s interview gave no sugar‑coated view of the competitive pressures that Ola Electric faces. The company competes against a range of domestic and international players such as Bajaj, TVS, Hero‑Vanguard, and the newly‑established startups that are flooding the Indian e‑bike market. Aggarwal explained that Ola Electric’s edge lies in its brand recognition, its integrated ecosystem of charging stations and software, and its scale.
Yet, as a Bloomberg piece cited in the Moneycontrol article points out, many of these competitors are aggressively reducing prices and are better positioned to leverage local supply chains. Aggarwal admitted that “the market is very price‑sensitive.” He added that Ola Electric will focus on a “premium‑mid‑range” segment for the first few years, before expanding into the mass‑market segment with lower price points.
Future‑Oriented Growth Strategy
Aggarwal’s vision extends beyond e‑bikes. He shared that the company is exploring a line of e‑cargos, electric scooters, and even electric buses, in partnership with state governments. “The next big wave is not just e‑mobility for individuals but also for logistics,” he said. He hinted that the company will also be developing an autonomous e‑bike platform that could be deployed in the gig‑economy.
The founder’s comments came at a time when India’s electric‑vehicle policy is becoming more favorable. The government’s “Make in India” initiative for EVs, along with the National Electric Mobility Mission Plan, is expected to unlock substantial subsidies and incentives. Aggarwal expressed optimism that “government support will accelerate our rollout of charging infrastructure, especially in tier‑2 and tier‑3 cities.”
Investor Takeaway
From an investor’s standpoint, the interview paints a picture of a company that is still refining its business model but is committed to long‑term growth. Aggarwal’s candidness about costs, competition, and battery strategy provides a realistic appraisal of the challenges that lie ahead. The share price’s robust first‑day performance, coupled with narrowing losses, signals that the market is willing to back a company that has the potential to disrupt India’s mobility ecosystem.
The founder’s confidence that the IPO was a strategic move rather than a financial maneuver is reassuring for shareholders. It indicates that the company is looking to use the capital to build scale, innovate in battery technology, and extend its product portfolio. While the road ahead will be tough—given the price‑sensitive Indian market and the capital intensity of battery manufacturing—Ola Electric’s leadership appears prepared to navigate these obstacles.
In the months ahead, analysts will be watching closely to see how well the company can translate its ambitious plans into tangible market share, how quickly its battery‑cell plant goes online, and how the company’s e‑bike pricing strategy plays out against local competitors. As Aggarwal himself says, “We are not just building a company; we are building an ecosystem.” If the company can maintain its growth trajectory and deliver on these promises, the IPO may well prove to be the right decision for both the founder and its investors.
Read the Full moneycontrol.com Article at:
[ https://www.moneycontrol.com/news/business/startup/i-don-t-regret-taking-ola-electric-public-says-founder-bhavish-aggarwal-on-market-feedback-since-ipo-13462737.html ]