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Singapore's investment firm Temasek led a $140 million funding round in India's Ola Electric at a valuation of $5.4 billion, two sources with the direct knowledge said, the latest funding for the e-scooter maker before its initial public offering.

The investment round has been closed and Ola will be receiving the funds within a week's time, though there will be another round of fund raising before it files papers for an up to $1 billion IPO planned for late 2023, said the first source.

Ola did not respond to a Reuters request for comment, while Temasek, which is an existing investor in Ola Electric, declined to comment.

Ola Electric, founded by Bhavish Aggarwal and backed by Japan's SoftBank Group, has become India's e-scooter market leader with a 32% share, competing with Ather Energy as well as companies such as TVS Motor and Hero Electric.

Valued at $5 billion last year, Ola sold around 95,000 e-scooters during April-August 2023, industry data showed. It recorded an operating loss of $136 million on a revenue of $335 million in the fiscal ended March 2023, Reuters reported.

The Indian government has said it wants electric variants to account for 70% of two-wheeler sales - which also include motorcycles - by 2030, a huge jump from 14% currently.