Electric Scooter manufacturer Ola Electric has bagged $300 million from its investors at an improved valuation of $6 billion as it plans to ramp up its production capacity.

In its previous round, Ola Electric raised $200 million from Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss, and others at a valuation of $5 billion. The company was also planning to raise $300 million as it needed the funds to increase its production capacity and develop core technologies.

This round was led by sovereign fund companies as the round has reportedly seen a significant response from investors. Paperwork for the deal will reportedly be completed in the coming week. Softbank Group, which is one of the earliest investors in the EV manufacturer, has not participated in this round.

According to reports, investors are expecting the company to break even soon and turn profitable.

The company will reportedly be using the funds raised in this round to increase its manufacturing capacity from 0.5 million units to 2 million units annually. Moreover, the funds will also be used for setting up its advanced cell chemistry battery plant for which it is receiving PLIs from the Indian government.

Within 18 months of inception, Ola Electric has achieved a revenue run rate of $1.2 billion, achieved positive EBITDA, and has the largest retail network in the automotive sector with a store count of 500 stores in 300 cities.