Ola Electric, the electric vehicles (EV) arm of cab aggregator Ola, today (Jul 12) announced that it had raised $100 million (Rs 744.5 crore) in long-term debt from Bank of Baroda.

10-year debt of US$100 million is towards the funding and financial closure of the Phase 1 of the Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers.

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

The first phase of Ola Futurefactory is nearing completion shortly, following which production trials of the Ola Scooter will commence. The soon-to-be-launched Ola Scooter will be manufactured at the Ola Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.

"Today’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 record time. We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world and we are happy that Bank of Baroda has joined us in our journey,” said Bhavish Aggarwal, Chairman & Group CEO, Ola.

“The government has brought in several policies to incentivise make-in-India and to enable India to become a global EV leader. Ola is leading from the front and we are delighted to partner with them for their EV business. The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them”, said Sanjiv Chadha, Managing Director & CEO, Bank of Baroda.

Earlier this month, Ola CEO Bhavish Aggarwal took to Twitter to share that the factory’s Phase-I was nearing completion and that the company's electric scooters would soon hit the market.

Besides its two-wheeler factory, Ola Electric is also working on Hypercharger, which the company claims will be the world’s largest electric two-wheeler charging network, stretching across 400 cities in India and Europe, with over 100,000 charging stations. Ola electric scooters are expected to offer a range of 75 km with just 18 minutes of charging.