Ola Founder Bhavish Aggarwal Becomes One of India's Youngest Billionaires Following IPO
Bhavish Aggarwal, the visionary behind Ola Electric Mobility Ltd., has emerged as one of India's youngest billionaires after the company's successful initial public offering (IPO). Just two years after facing significant challenges, including a high-profile incident involving one of his electric vehicles catching fire, Aggarwal's resilience and strategic vision have paid off, solidifying his position among the world's elite entrepreneurs.
The 38-year-old added an impressive $1.4 billion to his wealth as Ola Electric's shares surged 16% during their trading debut in Mumbai. This remarkable performance brought Aggarwal's net worth to $2.6 billion. The IPO is the largest India has seen in two years, underscoring the growing investor enthusiasm for electric vehicles (EVs) in the country.
Despite its newfound success, Ola Electric has yet to turn a profit. The company, founded in 2017 in Bengaluru, reported a net loss of Rs 14.7 billion for the fiscal year ending March 2023. However, this has not deterred investors, who are eager to tap into the burgeoning market for alternative fuels. Ola Electric is one of several EV-related firms capitalizing on this momentum, despite its relatively short track record.
At a press conference in Mumbai in late July, Aggarwal reflected on the company's journey, saying, "Three years ago, when we launched our product, I believe that’s when the EV story began". His confidence and determination have been key factors in Ola Electric's rapid ascent, which saw the company achieve unicorn status attaining a $1 billion valuation just two years after its founding, even before shipping a single scooter.
Ola Electric's rise has not been without its challenges. In 2021, shortly after the company launched its electric two-wheelers, a series of high-profile battery fires shook public confidence. The incidents led to the recall of over 1,400 scooters, marking a significant setback for the fledgling company. However, Aggarwal's leadership helped Ola Electric navigate these turbulent times, ultimately positioning the company for its recent IPO success.
Aggarwal's entrepreneurial journey began long before Ola Electric. After graduating from the prestigious Indian Institute of Technology Bombay, he started his career at Microsoft Research India. In 2010, he founded Ola Cabs, a ride-hailing service that quickly became a formidable competitor to Uber Technologies Inc. in India. Ola Cabs has since expanded into various tech-driven sectors, including online payments and food delivery, further cementing Aggarwal's reputation as a leading figure in India's startup ecosystem.
In addition to his work with Ola, Aggarwal has continued to explore new opportunities in the tech sector. In 2023, he launched Krutrim, India's first $1 billion artificial intelligence (AI) startup. Krutrim aims to build large language models, data centers, and eventually servers and supercomputers to support the AI ecosystem. This venture is yet another testament to Aggarwal's ability to identify and capitalize on emerging trends in the technology space.
Aggarwal's business ventures are not limited to Ola and Krutrim. He also holds stakes in the tea chain Chaayos and the news platform YourStory, among other investments. His involvement in a diverse array of tech-driven industries highlights his commitment to innovation and his belief in the potential of data as a key asset for future growth.
Nitin Pangarkar, an associate professor of strategy and policy at the National University of Singapore, noted Aggarwal's strategic approach, stating, "All of his firms are in tech-led sectors, creating data that can be used by his other businesses. But the attention given to the businesses could be an issue".
Aggarwal is a vocal supporter of Indian Prime Minister Narendra Modi's push for local manufacturing and frequently uses social media and blogs to discuss how his companies can contribute to India's economic development. His outspoken nature and willingness to take bold stances have drawn comparisons to Elon Musk, with some dubbing him 'India's Elon Musk'.
In a recent post on X (formerly Twitter), Aggarwal appeared to relish the opportunity to compete with global giants like Tesla, following the company's decision not to invest in India. 'This is Tesla’s loss, not India’s', he declared, signaling his confidence in Ola Electric's ability to dominate the Indian EV market.
Aggarwal's unyielding approach extends to his personal beliefs as well. In May, he made headlines when he announced that his companies would no longer use Microsoft Azure's cloud services, switching instead to Krutrim's cloud offerings. The move was prompted by a LinkedIn chatbot using gender-neutral pronouns with him, which Aggarwal criticized as 'pronoun illness'. He has since called for India to establish its own guidelines on diversity, equity, and inclusion, rather than adopting Western standards.
As Bhavish Aggarwal continues to push boundaries and disrupt industries, his ascent as one of India's youngest billionaires serves as a testament to his vision, resilience, and unwavering confidence. His journey from a young entrepreneur to a global business leader is a story of determination and innovation, with Ola Electric's successful IPO marking just the beginning of what promises to be an extraordinary career.