Ola Electric and Bank of Baroda have signed a 10-year debt of US $100 million (Rs 740 crore) long-term debt financing pact towards the funding and financial closure of the Phase 1 of the Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers.

Ola had earlier announced last December that it will be investing Rs 2,400 crore for setting up the Phase 1 of the factory which 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.

Bhavish Aggarwal, Chairman & Group CEO, Ola said, “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.”

“The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them”, added Sanjiv Chadha, Managing Director & CEO, Bank of Baroda.

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.