Ola Electric raises $100-million long-term debt to build mega factory

The Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu. At full capacity of 10 million vehicles annually, it will be the world's largest two-wheeler factory

Ola Electric and Bank of Baroda on Monday signed the biggest long-term debt financing agreement in the Indian electric vehicle (EV) space. This 10-year debt of $100 million is towards funding and financial closure of phase 1 of the Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers.

Ola had announced in December 2020 that it will be investing Rs 2,400 crore for setting up phase 1 of the factory.

“Today’s (Monday’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