Ola Electric Resolves Financial Disputes With Rosmerta Group, NCLT Pleas Withdrawn

Ola Electric

Technologies Private Limited, a subsidiary of Ola Electric Mobility Limited, has settled all its pending dues with vehicle registration service provider Rosmerta Group, leading to the withdrawal of insolvency petitions previously filed against it.

Rosmerta Group has filed a memorandum for the withdrawal of the said petitions from the NCLT, Bengaluru.

“Ola Electric Technologies, a wholly owned subsidiary of Ola Electric Mobility, has settled all its dues. With the receipt of INR 26.75 Cr, which consists of the entire claim raised before NCLT, Rosmerta Group companies are withdrawing their petitions before NCLT, Bengaluru,” an India Today report said quoting Rosmerta statement.

The development comes almost two weeks after the Rosmerta Group filed an insolvency plea proceeding against the Bengaluru-based company. The petition, submitted before the Bengaluru bench of NCLT, alleged a default in payment for the services rendered by the operational creditor and sought the initiation of the corporate insolvency resolution process against Ola Electric Technologies.

Contract Renegotiations Impact EV Registrations: After a weak performance in the third quarter of the financial year ending March 2025 (Q3 FY25), Ola Electric had said that it expected its EV registrations for the month of February to have a “temporary impact”.

Back then, the company said in an exchange filing that its registrations on Vahan will be “temporarily impacted” due to it renegotiating terms of agreements with its agencies Rosmerta Digital Services Pvt Ltd and Shimnit India Pvt Ltd.

The EV maker signed contracts with both the service providers in December 2021.

While Rosmerta Digital Services offers digital services and distribution for vehicle registrations, last-mile delivery, among others, to original equipment manufacturers (OEMs), Shimnit manufactures high-security registration plates for vehicles plying on the Indian roads.

According to Vahan data, the Bhavish Aggrawal-led company lost its top spot as a market leader in the E2W segment for the month of February with a whopping 65% fall in registration to 8,390 units from 24,376 units recorded in the previous month.

However, Ola Electric claimed in a statement that it sold over 25,000 units in February and remained a leader in the E2W segment with a market share of 28%.

Ola Electric Vs Regulatory Hurdles: Lately, the company has found itself in hot waters with regulatory agencies. It was reported that six Ola Electric’s stores in Madhya Pradesh and 26 in Maharashtra were raided by transport authority officials following allegations of lack of proper documentation and trade certificates. However, sources told Inc42 that these actions were not raids and were rather inspections carried out by the regional authorities.

Widening Losses For Ola Electric: The company’s consolidated net losses widened 50% to INR 564 Cr in Q3 FY25 from INR 376 Cr in the year-ago quarter. The losses increased 14% on a quarter-on-quarter (QoQ) basis from INR 495 Cr. Its revenue from operations also plunged 19% to INR 1,045 Cr during the quarter under review from INR 1,296 Cr in Q3 FY24.

Some Respite On D-Street: Despite a tussle with regulatory authorities and slapped with an insolvency plea, stocks of Ola Electric zoomed 10.80% during the last week period from March 13 to March 21, closing last week’s session at INR 56. The stocks rebounded after it touched an all time low on March 18 at INR 46.32.

Today (on March 25), the company’s stocks closed 2.82% lower at INR 54.15 on the BSE. However, the stocks rallied as much as 7% to hit an intraday high at INR 58.

EV Startup Landscape In India: According to Inc42’s study on the EV landscape in India, the Indian startup ecosystem is home to about 119 funded startups operating in this industry who have raised about $3.7 Bn since 2014. The Indian EV market will become a $132 Bn opportunity by 2030.