Ola Electric secures $100m debt from Bank of Baroda for Ola Futurefactory

Ola Electric, a business unit of ANI Technologies, has signed a 10-year debt financing agreement for $100 million with Bank of Baroda for funding and financial closure of phase 1 of its Ola Futurefactory.

To be located in Krishnagiri, Tamil Nadu, Ola Futurefactory will be the global manufacturing hub of Ola Electric for its electric two-wheelers.

In December 2020, Ola Electric announced plans to invest INR 2,400 crore ($320 million) for setting up Ola Futurefactory Phase 1.

Bhavish Aggarwal – Chairman and Group CEO of Ola, commenting on the debt financing agreement, said that it “signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time.

“We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world and we are happy that Bank of Baroda has joined us in our journey.”

Ola Electric secures $100m debt from Bank of Baroda for Ola Futurefactory. Photo courtesy of Anita starzycka from Pixabay.

The Ola Futurefactory will be built on a 500-acre site where it will produce 10 million electric two-wheelers per year at full capacity.

Ola Electric said that phase 1 of the Ola Futurefactory is on the verge of completion, after which production trials of Ola Scooter will begin.

Ola Futurefactory will not only manufacture Ola Scooter but also serve as the global electric vehicle hub for the Ola group for its line of scooters and other two-wheelers.

Sanjiv Chadha – Managing Director and CEO of Bank of Baroda said: “The government has brought in several policies to incentivise make-in-India and to enable India to become a global EV leader.

“Ola is leading from the front and we are delighted to partner with them for their EV business. The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them.”