The Indian ride-hailing firm, Ola Electric, has announced the signing of a new long-term debt financing agreement with the Bank of Baroda making it the largest such agreement in the Indian EV industry. The 10-year debt, worth $100 million, will be used towards the funding and financial closure of Phase 1 of the Ola Futurefactory.
The Ola Futurefactory is key to Ola’s operations as it’s set to become its global manufacturing hub for its electric two-wheelers. Sanjiv Chadha, Managing Director & CEO at the Bank of Baroda said that the Ola Futurefactory will put India on the global EV map and that the bank is “proud to be associated” with Ola Electric.
Providing a comment for Ola, Bhavish Aggarwal, Chairman and Group CEO, said:
“Today’s agreement for long term debt financing between Ola and Bank of Baroda 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,”
The Ola Futurefactory is currently being built on a 500-acre site in Tamil Nadu, India. Once completed, it will build 10 million vehicles every year, making it the world’s largest two-wheeler factory. According to the firm, the first phase of the factory is nearly complete. Following the completion of the first phase, production trials of the Ola Scooter will begin.