Electric scooter maker Ola Electric has sustained an operating loss of $136 million on revenue of $335 million in the financial year 2022-23 (FY23) missing its revenue goals, said a report on Friday. The loss comes as the SoftBank-backed e-scooter maker is preparing for an estimated $700 million IPO, said the Reuters report citing three sources. It also said that Ola Electric is yet to file its FY23 financials with the authorities. The IPO-bound firm has till September to file the previous year’s earnings.


In June of last year, the e-scooter maker announced it was making good progress and expected to exceed a 'run rate' of $1 billion by the end of FY23, the report noted. The run rate is a financial metric derived by taking one month of revenues and multiplying it by 12 to project annual earnings. The company also expressed optimism about its future prospects, indicating confidence in its growth trajectory.


However, two sources with direct knowledge of its financials told Reuters that the revenue projection for the last financial year was missed. Ola’s first full year of operations saw a revenue of $335 million with over 150,000 unit sales and an operating loss of $136 million. Ola sold about 21,400 electric scooters in March – the last month of FY23.


Ola, after starting its sales in late 2021, quickly emerged as the leading player in India's e-scooter market, capturing an impressive 32 per cent market share, as per the report. In a highly competitive market, it competes with companies like Ather Energy, TVS Motor, and Hero Electric.


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As per the report, last year, Ola was valued at $5 billion, and it has successfully secured close to $800 million in funding from investors since 2019. Earlier this year, Ola Electric set ambitious internal projections, aiming to quadruple its revenue to $1.5 billion in 2023-24. Additionally, the company aimed to achieve its first profitable year during the same period. However, the situation changed after reduced government incentives on e-scooters in May, leading analysts to suggest that Ola and other players may need to revise their growth strategies, the report noted. 


Despite the challenges posed by the incentives cut, Ola Electric remains optimistic about achieving operational profitability this year, a crucial metric closely observed by potential IPO investors, one of the sources told the news agency. 


Earlier the company reveled that it is manufacturing its e-scooters in "the world's largest 2-wheeler factory" in Tamil Nadu factory. The facility has the capacity to produce up to 10 million units annually. 


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