Temasek, Singapore's sovereign wealth fund, is said to be mulling a USD 300-350 million investment round in a portfolio business, Ola Electric. According to sources, the private equity firm is looking to invest between $100 and $150 million in the electric vehicle manufacturer. According to media reports, the acquisition is nearly complete, and the investment round is expected to raise Ola Electric's valuation to USD 6 billion, a 20% rise from the USD 5 billion valuation acquired in its USD 200 million funding round.

Temasek made its first investment in Ola Electric in 2021 as part of a USD 53 million round, valuing the EV company at USD 2.7 billion. The development comes only days after it was revealed that founder Bhavish Aggarwal is in discussions with Catamaran Ventures, the investment firm founded by Infosys Co-founder NR Narayana Murthy. Catamaran was also believed to be interested in investing up to USD 100-150 million at the time, matching Temasek's commitment in the future capital round.

Notably, this may be Ola Electric's final private equity investment, as the electric two-wheeler producer began recruiting IPO bankers last month in preparation for a prospective IPO next year. Given the amount of time between now and then, however, there is widespread suspicion that Ola Electric may submit preliminary IPO papers early next quarter.