In a significant development in the Indian electric vehicle (EV) market, Ola Electric, under the leadership of Bhavish Aggarwal, has reportedly sold over 8,200 scooters to its parent company, ANI Technologies, by December 2023.
However, this transaction was not disclosed in the company's Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO) worth over Rs 7,000 crore, filed in December last year. The DRHP contained Ola Electric's financial statements up until June 30, 2023, but did not include the details of this related party transaction.
An Ola Electric spokesperson was quoted as saying, "Till date, 8,206 Ola Electric scooters have been registered under ANI Technologies for its e-bike, parcel and other delivery services. In total, 2.17 percent of our overall registrations till date have been under ANI Technologies."
According to sources cited in the report, the number of e-scooters sold to Ola Cabs' parent and its subsidiaries between April 2022 and December 2023 was even higher, reaching about 12,000 units.
Ola posted a revenue of Rs 2,800 crore in the fiscal year 2022-23, managing to cut its losses by almost 50 percent. This is a significant improvement compared to the previous fiscal year when the company registered revenue of Rs 1,970 crore. ANI Technologies also registered a 42 percent growth in revenue to Rs 2,799 crore in FY23, compared to the previous fiscal year.
The company managed to reduce its losses by about 50 percent to Rs 772 crore in FY23 against Rs 1,522 crore in FY22. Ola Money, the company's digital payment platform, registered Rs 85.5 crore revenue with a loss of Rs 54.6 crore.
The sale of e-scooters to its parent company is not an isolated incident but part of a broader trend in the EV market. In the past, several EV manufacturers have adopted similar strategies to boost their sales and expand their market presence. For instance, Tesla has been selling its electric cars to its sister company, Tesla Leasing, which then leases these vehicles to customers.
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