Ola Electric Mobility (Ola Electric), the ride-hailing firm’s electric vehicle arm, has acquired Etergo BV, an Amsterdam-based electric scooter original equipment manufacturer. Ola did not disclose the amount it was paying to acquire Etergo, which was last valued at about $90 million and which has raised total funding of $20 million, according to the sources.
This acquisition marks Ola’s entry into the premium electric two-wheeler market, both globally and nationally. Ola Electric aims to launch its global electric two-wheeler in India in 2021. 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. Etergo has about 70 employees in the Netherlands and “the company would play a key role in providing the technology” to help Ola launch its first electric two-wheeler next year, said a person familiar with the development. The move would also put the firm in direct competition with electric two-wheeler makers such as Ather Energy, Hero Electric and TVS Motor Company.