Ola Electric to raise up to ₹1,500cr
What's the story
Ola Electric, a leading player in the electric two-wheeler market, has approved a plan to raise up to ₹1,500 crore. The fund will be raised through equity shares or convertible securities. The company's board approved the proposal on September 5. The fundraising can be done via various routes including public offer, rights issue, qualified institutional placement (QIP), and private placement, among others.
Leadership changes
Fundraising comes after ₹780 crore QIP in June
The latest fundraising plan comes just three months after Ola Electric raised ₹780 crore through a QIP in June. The company had initially aimed to raise ₹500 crore through this issue.
Separately, the company's Chief Operations Officer Hyun Shik Park has also resigned from his position citing personal reasons. His resignation is effective from the end of business hours on September 5.
Market challenges
Park joined Ola Electric in August 2023
Park joined Ola Electric in August 2023 after a long stint at LG.
He was instrumental in leading operations at Ola's cell manufacturing business and overseeing the company's gigafactory for battery cell production.
However, despite these efforts, Ola Electric has been losing ground to competitors such as TVS Motor, Bajaj Auto, and Ather Energy.
The company is now fifth in terms of monthly registrations.
Financials
Ola Electric's financial performance in FY26
Ola Electric has been trying to boost sales and improve its financial performance. In FY26, the company's revenue from operations fell 50% year-on-year (YoY) to ₹2,253 crore from ₹4,514 crore in FY25.
However, its consolidated net loss narrowed by 19.5% to ₹1,833 crore from ₹2,276 crore in FY25.
Vehicle deliveries also fell to 173,794 units from 307,846 units a year earlier.
In August alone, Ola sold 13,849 electric two-wheelers with a market share of 7.7%.