Ola Electric, gearing up for its upcoming IPO, has secured Rs 100 crore in debt funding from Alteria Capital. This marks the second instance of debt financing for the Bengaluru-based firm in 2024.

The company’s board has approved a special resolution to issue 10,000 non-convertible debentures at a price of Rs 1,00,00 each, aiming to raise the aforementioned amount, as per regulatory filings accessed from the Registrar of Companies (RoC).

This move follows closely on the heels of a $50 million debt funding round from EvolutionX just two months prior.

According to the filings, the debentures carry an interest rate of 13.8% per annum, with an additional 2% interest per month in case of default.

Ola Electric, led by Bhavish Aggarwal, has raised over $1 billion through a combination of equity and debt, with a valuation of $5.4 billion in its latest funding round, according to startup data intelligence platform TheKredible.

The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December 2023, aiming to raise Rs 5,500 crore ($660 million) through an IPO. Reports suggest that SEBI has granted approval for the public listing.

As per the DRHP, Bhavish Aggarwal holds the largest stake at 36.94%, followed by SoftBank at 21.98%. Tiger Global, Indus Trust, and Alpha Wave own 6.03%, 3.85%, and 3.49%, respectively.

Ola Electric witnessed significant growth in FY23, with its revenue soaring seven-fold to Rs 2,631 crore compared to Rs 373 crore in FY22. However, its losses also surged by 87.76% to Rs 1,472 crore in the fiscal year ending March 2023.

In the electric two-wheeler segment, the SoftBank-backed company faces competition from Hero Electric, Ather Energy, TVS, and others. According to Vahan data, Ola Electric commands a 49% market share in two-wheeler EVs, with 37,191 e-scooter registrations in May.