By AltG Research On Behalf Of Poornima Vardhan & Taponeel Mukherjee
The news of a potential Ola Electric IPO once again brings into focus the dynamic and rapidly evolving world of mobility and connectivity. Regardless of the merits of the IPO, the key point is that we are at a moment in time when the way we travel, communicate and live is about to change forever. The last time this was so was at the beginning of the 20th Century with the rapid adoption of Internal Combustion Engine, Oil, Electricity and Air Travel more than 100 Years Back!
The Ola Electric IPO points towards 3 crucial aspects of the tectonic shift. These are both opportunities and threats for incumbents and a Once-In-A-Lifetime investment opportunity for investors:
Rapid Shifts In The Mobility Profit Pools - Mobility is going the Mobile way! Hardware makers will continue to lose profit pools to software makers such as telematics and battery makers - Industries growing at north of 15% and while keeping healthy margins. Capital allocation to software for existing hardware makers and investors is the game to play!
The EV Connectivity world is a precursor to a connected world where IOT will be a driver of all things from street lights to water meters to agriculture to industrial automation. The question isn’t if, but when?
Wired Broadband Infrastructure Is The Most Important Infra For All The Above - India's wired broadband subscriber base is on the cusp of reaching nearly 35 million users compared to China’s 590 million wired broadband subscribers. The transformation of industries as low-latency connectivity gathers steam will be a game-changer. From Mining to agriculture, India will transform as incomes rise and connectivity rapidly scales. India needs 500 million broadband connections to be a $ 50 Trillion economy.
In conclusion, Ola Electric’s IPO news opens the floodgates for an entire new world where existing players stand to be disrupted unless they choose to disrupt themselves!
Disclaimer: In the article "OLA ELECTRIC IPO: Leading the Indian Electric Vehicle Industry or Embracing the Vinfast Approach?" above - Any views, comments or communication (above or in the past) should not be construed to be investment advice by Alternative Growth (hereafter referred to as “AltG”) in any form whatsoever. AltG does not make an offer to sell or solicit to buy any securities.