Ola Electric's Board Approves INR 1,700 Cr Fundraise The capital will be secured through a private placement of non-convertible debentures or similar instruments, rolled out in phases.
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Ola Electric's board gave a green light on Thursday to raise INR 1,700 crore—approximately USD 204 million—in a bold move to stabilise its footing after going public. This marks its first major fundraising effort since its market debut, a response to dwindling market share and elusive profitability.
The capital will be secured through a private placement of non-convertible debentures or similar instruments, rolled out in phases. The urgency comes on the heels of a credit rating downgrade by ICRA, which cited disappointing sales figures and prolonged cash burn as major concerns.
Despite launching its much-anticipated Roadster X electric motorcycle, Ola Electric has been under pressure. Once leading India's EV two-wheeler market, it now trails behind TVS Motor—currently the top player—followed by Bajaj Auto.
In a bid to stay competitive, Ola has aggressively cut costs by shutting down regional warehouses, streamlining operations, and laying off around 1,000 employees.
However, deeper issues persist. Regulatory setbacks, rising consumer complaints, and inconsistencies between reported sales and Vahan registry data have eroded investor confidence. The result: a 39% plunge in Ola's share price this year, closing at INR 51.5 on Thursday.
With this fresh infusion of funds, Bhavish Aggarwal's Ola Electric hopes to steer out of turbulent waters, rebuild trust, and reignite growth. But the road ahead will demand more than capital—it will need a clear strategy and unwavering execution.
