Ola Electric Plans First Fundraise Since IPO

SUMMARY

The board of Ola Electric is scheduled to meet on May 22 to consider a proposal to raise funds via the issuance of NCDs

However, details such as the size of the round and the names of the investors are unknown

At 11:11 AM, shares of Ola Electric were trading at INR 52.01 apiece on the BSE, down 1.05% from the last close

Bhavish Aggarwal-led Ola Electric is considering raising fresh funds amid a decline in its stock price and mounting regulatory scrutiny over a potential mismatch in its sales data and actual vehicle registrations.

The board of Ola Electric is scheduled to meet on May 22 to consider a proposal to raise funds via the issuance of non-convertible debentures (NCDs) or any other instrument, in one or more tranches, the company said in an exchange filing.

However, details such as the size of the round and the names of the investors are unknown.

At 11:11 AM, shares of Ola Electric were trading at INR 52.01 apiece on the BSE, down 1.05% from the previous close. In the last six months, the stock has tanked over 20% and is currently trading nearly 32% below its listing price of INR 76.

To note, the development will mark the EV maker’s first capital raise if the board approval gets through, since making its IPO debut.

Ola Electric was also in SEBI crosshairs over alleged insider trading. However, it dismissed the report calling it factually “inaccurate.”

Also, the transport ministry hauled up the EV maker over missing trade certificates, in April, where the ministry was keen to learn if the EV unicorn has unregistered vehicles stocked at its centres.

Following which, there have been complaints on Ola Electric delaying the deliveries of its electric motorcycle range Roadster X by a month. The model was launched as part of ‘The Roadster Series’, during its annual event in August last year.

On the other hand, Ola Electric’s investor SoftBank Vision Fund I (SVF I) reported a profit of $3.5 Bn in the quarter ended March 2025. Despite a healthy bottomline, the investor said that the fair value of SVF II’s public portfolio companies dwindled 21.7% sequentially during the quarter under review due to fall in share prices of Ola Electric and foodtech major Swiggy.

Notably, the EV company accounted for a gross loss of $46 Mn for the fund, fetching a mere $510 Mn as of March 2025 against a total investment of $556 Mn.

Ola Electric has been taking a slew of initiatives to recover its share loss and revive consumer faith, including the recent pilot of a new service dubbed ‘Hyper Delivery’ that will enable the company offer same day registration and delivery of its escooters, in Bengaluru.