StartUps

Ola Electric acquires Etergo; plans to launch line of two wheeler

Ola Electric has said to have acquired Etergo; a Dutch two-wheeler producer. The terms stand undisclosed but the transaction is valued upwards of $100 M.

CIOL Bureau

27 May 2020 09:18 IST

New Update

Ola Electric just came out last year. After venturing into the EV business, Ola-E has taken to expansion. In a recent development, Ola has acquired an Amsterdam-based electric scooter startup- Etergo. Further, it plans to locally produce and launch its own line of two-wheelers as soon as this year.

Advertisment

The announcement came out on Wednesday. The Unicorn said that they have taken in Etergo; the terms though stand undisclosed. Etergo has built a scooter that uses swappable, high energy battery. It delivers the speed of up to 240 km (149 miles). The scooter’s built, design and efficiency are so impressive that many people call it the Tesla of the scooter world. The statement read:

This acquisition will further bolster Ola Electric’s strong engineering and design capabilities with the Etergo team’s extensive vehicle development experience with leading automotive companies like Tesla, General Motors, Ferrari, Jaguar, and BMW. Etergo’s team will continue to be based out of Amsterdam as they join Ola Electric.

Though we don't know the exact value of the deal, Etergo stands at $90 million in its previous financing round. Also, it has raised €20.3 million from the market before its acquisition.

Advertisment

Future of Ola Electric

Ola gained the unicorn status last year when it raised $300 million. That year, it also pointed out its plans to launch its electric two-wheeler in India. Many companies have started producing electric components of EVs in India. But there are very companies in the EV two-wheeler market as gas-powered vehicles run in India.

Two-wheelers mobility option has proven more affordable to tens of millions of Indians. Thus, Ola will have a long term focus on the same. The SoftBank-backed firm leads the cab-riding market in India. It has the bike-sharing option in the app, but manufacturing bikes is a whole new segment.

ola-electric ola