Amid declining market share and falling stock price, electric two-wheeler maker Ola Electric is planning a fresh fundraise and has scheduled a board meeting on May 22 to consider raising capital through non-convertible debentures (NCDs) or other eligible securities.
According to a stock exchange filing late on Monday, the fundraise could take place in one or more tranches, either via private placement or other permissible methods. This would mark the Bengaluru-based company's first funding exercise since its initial public offering (IPO) last year.
However, other details such as the size of the round, valuation, and names of potential investors have not been disclosed by the Bhavish Aggarwal-led company.
Ola Electric has come under increased regulatory scrutiny in recent months over issues such as sales discrepancies, vehicle quality concerns, and the absence of trade certificates at several retail locations—factors that have contributed to its shrinking market share.
According to data from the government-run Vahan portal, Ola Electric lost its leadership position in the electric two-wheeler segment in April to TVS Motor. The company reported 19,709 vehicle registrations last month, down 42% year-on-year, resulting in a market share of 21.46%.
The fundraise also comes as Aggarwal moves ahead with restructuring his group companies. As reported by ET on May 5, the intellectual property rights for the Ola brand—currently housed under ANI Technologies—are being shifted to a new holding entity controlled by his family office. The move has faced opposition from some ANI shareholders.
In February, Ola Electric came under regulatory heat over inconsistencies in its reported sales figures. While Vahan data showed 8,652 vehicle registrations that month, the company reported sales of 25,000 units in regulatory filings.
Ola attributed the gap to a temporary backlog caused by contract renegotiations with registration service providers Rosmerta and Shimnit India. Nevertheless, the discrepancy triggered inquiries from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
In a latest development, Ola’s artificial intelligence (AI) arm, Krutrim, has faced backlash on social media following reports of the death of Nikhil Somwanshi, an employee who had joined the firm in August last year. Ola later said in a statement that Somwanshi was on personal leave at the time of the incident.
In the October-December quarter, Ola Electric’s net loss widened 50% YoY to Rs 564 crore, while operating revenue fell 19%. The company has yet to disclose its financial results for the fourth quarter of FY25.
Shares of Ola Electric closed trading at Rs 51.12 on the BSE on Tuesday, down 2.74% from the last close.
( Originally published on May 20, 2025 )
According to a stock exchange filing late on Monday, the fundraise could take place in one or more tranches, either via private placement or other permissible methods. This would mark the Bengaluru-based company's first funding exercise since its initial public offering (IPO) last year.
However, other details such as the size of the round, valuation, and names of potential investors have not been disclosed by the Bhavish Aggarwal-led company.
Ola Electric has come under increased regulatory scrutiny in recent months over issues such as sales discrepancies, vehicle quality concerns, and the absence of trade certificates at several retail locations—factors that have contributed to its shrinking market share.
According to data from the government-run Vahan portal, Ola Electric lost its leadership position in the electric two-wheeler segment in April to TVS Motor. The company reported 19,709 vehicle registrations last month, down 42% year-on-year, resulting in a market share of 21.46%.
The fundraise also comes as Aggarwal moves ahead with restructuring his group companies. As reported by ET on May 5, the intellectual property rights for the Ola brand—currently housed under ANI Technologies—are being shifted to a new holding entity controlled by his family office. The move has faced opposition from some ANI shareholders.
In February, Ola Electric came under regulatory heat over inconsistencies in its reported sales figures. While Vahan data showed 8,652 vehicle registrations that month, the company reported sales of 25,000 units in regulatory filings.
Ola attributed the gap to a temporary backlog caused by contract renegotiations with registration service providers Rosmerta and Shimnit India. Nevertheless, the discrepancy triggered inquiries from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways.
In a latest development, Ola’s artificial intelligence (AI) arm, Krutrim, has faced backlash on social media following reports of the death of Nikhil Somwanshi, an employee who had joined the firm in August last year. Ola later said in a statement that Somwanshi was on personal leave at the time of the incident.
In the October-December quarter, Ola Electric’s net loss widened 50% YoY to Rs 564 crore, while operating revenue fell 19%. The company has yet to disclose its financial results for the fourth quarter of FY25.
Shares of Ola Electric closed trading at Rs 51.12 on the BSE on Tuesday, down 2.74% from the last close.
( Originally published on May 20, 2025 )
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