Ola Electric, the EV startup has recently declared that they will be launching electric driven auto-rickshaw shortly. The rickshaws are meant to be sold directly to consumers. As per the report, the vehicle is likely to be called Raahi and the company is expected to unveil it later this month.

Ola electric is working on Raahi for a few years as part of its broader strategy to enter the commercial vehicle sector. It is entering in the competitive market, where it will compete with established players like Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the electric three-wheeler space.

Ola Electric is gearing up for up to make significant announcements, including their new updates regarding gigafactory, in upcoming months, just before unveiling their IPO.

Mahindra, Piaggio and Bajaj’s electric autorickshaws vary between the range of 2.0 lakh to upwards of 3.5 lakh, depending on the model and add-ons. According to government transport website Vahan, more than 580,000 electric three-wheelers were sold last year, 66% higher than in 2022. Electric three-wheelers comprised over 50% of total three-wheeler sales in 2023.

Raahi is a part of Ola’s strategic move in the run up to its initial public offering. The firm has already  filed a draft red herring prospectus (DRHP) in December last year, and is currently looking to raise up to 5,500 crore through a fresh issue, apart from an offer for sale of 95.2 million shares by existing investors.

Before launching the IPO, Ola is trying hard to strengthen its position in the electric two-wheeler segment, where it is the market leader. Recently, in February, the company extended the battery warranty for all its variants of scooters to eight years. It has declared that, they are planning to set up 10,000 fast-charging points by the end of the next quarter. Also they are planning to sell portable fast chargers to customers, and expand its service center network from the current 400 to 600 by April.

The company is working on on opening its gigafactory, where the company will produce their own battery cell. Also they are planning to allocate 1,226 crore from the projected IPO proceeds for the gigafactory.

Currently, the firm is holding 41% market share in the electric scooter segment as of February after selling 33,722 units. Whereas, its competitors TVS Motor, Bajaj Auto and Ather Energy held 17.7%, 14.2% and 11%, respectively.

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