Ola Electric to leverage scooter supply chain for new ‘Roadster’ series motorcycle, says Bhavish Aggarwal

By Shruti Mishra   August 17, 2024, 12:13:28 AM IST (Published)

Ola Electric, the trailblazing electric vehicle company founded by Bhavish Aggarwal, has made headlines once again with its bold entry into the electric motorcycle market. Unveiling the much-anticipated ‘Roadster’ series, Ola Electric is positioning itself to reshape the landscape of electric two-wheelers. The new range includes three models—the Roadster Pro, Roadster, and Roadster X—spanning a price range from ₹75,000 to ₹2,50,000.

Speaking to CNBC-TV18, Bhavish Aggarwal, the founder and CMD of Ola Electric, highlighted that the new motorcycles will benefit from the existing scooter supply chain and cost structures, leveraging a common platform and suppliers. This integration ensures that the company maintains a robust gross margin right from the start.

He added that the production strategy capitalises on Ola Electric’s substantial factory capacity, which stands at one million units annually. With current scooter volumes at 5,00,000 units per year and a flexible production system that can accommodate both scooters and motorcycles, Ola Electric is poised for significant growth.

Aggarwal expressed confidence in the growth potential of the electric motorcycle segment. He noted that the market for electric vehicles (EVs) has matured significantly over the past few years. “Three years ago, nobody knew EVs. We had to educate the scooter customer about what an EV is.

We had to set up the charging network, retail distribution, brand presence, and service network,” Aggarwal remarked. Today, the market is better informed and more receptive, providing a solid foundation for the introduction of electric motorcycles, Aggarwal noted.

In a separate development, Skydo, a cross-border payments platform for enterprises, MSMEs and freelancers, has secured $5 million in a pre-Series A funding round led by Elevation Capital. This funding will bolster the company’s operations, particularly in enhancing risk monitoring and compliance.

According to Movin Jain, co-founder of Skydo, the company’s initial focus will be on markets critical to Indian exports, with the United States leading the charge, followed by the UK, Europe, Canada, Australia, and Singapore. Jain highlighted that Skydo plans to not only expand into these regions but also establish local offices in these geographies to ensure smooth operations and compliance with international standards.

Jain also acknowledged the competitive landscape, noting that other banks and forex players are developing similar solutions. However, he views this competition as a positive force. Jain believes that competition will not only drive innovation but also educate customers about the benefits of technology in financial transactions. Far from a winner-takes-all scenario, Jain sees a thriving market where multiple players can succeed and contribute to a more dynamic and efficient sector.

On the financial front, Jain is optimistic about Skydo’s profitability. The company’s business model, which generates revenue per transaction, boasts high gross margins. As Skydo scales its operations and enhances its service offerings, Jain anticipates improved margins and a straightforward path to profitability. With current growth rates, Jain projects that Skydo will achieve profitability within the next two years.

Additionally, CNBC-TV18’s Aishwarya Anand gets a special report on Attero, an electronic waste and battery recycling startup. Attero has recently marked its foray into the D2C space with the rollout of an integrated e-waste consumer take-back platform called Selsmart which will enable Indians to receive fair market equivalent prices in return for e-waste along with data security and disposal of e-waste through Attero’s recycling processes.

Watch the accompanying video for more.