MUMBAI, July 20 (Reuters) – Indian e-scooter maker Ola Electric expects income to quadruple to $1.5 billion this monetary yr after which double that once more in two years, in accordance with a doc containing company projections and folks briefed on the matter.

The figures, nonetheless, pre-date shock cuts by the federal authorities to e-scooter incentives in May.

According to the doc, which was ready forward of investor conferences for Ola’s deliberate IPO price as much as $700 million and was reviewed by Reuters, the corporate can be focusing on $220 million in working revenue for the yr to end-March.

The $1.5 billion income goal compares with a results of $335 million for the previous monetary yr, two folks briefed on the matter mentioned, including that there had been no change to Ola’s inside estimates because the doc was drawn up in April.

Ola, which is backed by Japan’s MushyBank Group (9984.T) and Singapore’s Temasek, didn’t reply to repeated requests from Reuters for remark.

Since it started gross sales in late 2021, Ola has grow to be India’s e-scooter market chief with a 32% share, competing with Ather Energy in addition to corporations like TVS Motor (TVSM.NS) and Hero Electric. It was valued at $5 billion final yr and has raised almost $800 million from traders since 2019.

INCENTIVES SLASHED

The Indian authorities has mentioned it desires electrical variants to account for 70% of two-wheeler gross sales – which additionally embrace bikes – by 2030, an enormous bounce from 14% at the moment.

But in May, it shocked the market by slashing e-scooter money incentives with out rationalization, saying it could pay simply as much as 15% of the worth earlier than taxes. It had earlier pledged to pay as much as 40%.

In June, industry-wide Indian gross sales of e-scooters greater than halved from May to a six-month low of 45,800 models, authorities knowledge confirmed.

“The subsidy cut poses a roadblock for all (e-scooter) companies’ growth because prices for the consumer have increased. Revised projections have to be applied, which will also hit valuations,” mentioned Jay Kale, a vp at Elara Capital.

But in an interview final week with India’s Business Standard, Ola CEO Bhavish Aggarwal mentioned he was not fazed by the subsidy lower and mentioned final month’s slide in industry-wide gross sales was only a “short-term blip”.

“The current subsidy after reduction is the right amount”, Aggarwal was quoted as saying, including that the corporate may “live without” such incentives.

According to the doc seen by Reuters, Ola has estimated it can promote 882,000 scooters this monetary yr and a couple of.9 million in two years time.

In distinction, KPMG in a June report forecast this monetary yr’s e-scooter demand at simply 1 million models, a 3rd decrease than beforehand estimated. It predicts industry-wide gross sales of simply 2 million in two years time.

For the quarter simply ended, Ola bought 68,316 e-scooters, {industry} knowledge exhibits. That’s 17% under the 82,000 estimate within the doc seen by Reuters.

The doc exhibits Ola aiming for income of $3.9 billion and working revenue of $578 million in two years.

For its IPO, Ola is working with Goldman Sachs and Bank of America amongst others, and has began early meetings with traders to temporary them on the corporate’s plans.

Reporting by M. Sriram and Aditi Shah; Editing by Aditya Kalra and Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.