Z47 Exits EV Maker Ola Electric

SUMMARY

Z47 held 1.93% stake, via Matrix Partners India Investments of the Bhavish Aggarwal-led EV maker at the end of June quarter

Z47 is likely to make more secondary stake sales from its India portfolio, which includes names like Razorpay, OfBusiness, and Practo

The company reported a 15% decline in its net loss to INR 418 Cr in Q2 FY26 from INR 495 Cr in the same quarter last year

Z47 (erstwhile Matrix Partners) has completely exited listed EV company Ola Electric. The VC firm’s name doesn’t appear in the list of Ola Electric’s shareholders at the end of September 2025 quarter.

Notably, Z47 held 8.5 Cr shares, or a 1.93% stake, via Matrix Partners India Investments of the Bhavish Aggarwal-led EV maker at the end of June quarter.

Z47 first invested in Ola Electric in 2019, along with Tiger Global. In Q1 FY26, both Z47 and Tiger Global diluted their stakes in the EV company. Z47 earned around INR 144 Cr by diluting its stake by 0.81%.

Z47’s complete exit from the EV company bagged 7-10X returns on its investment of INR 107 Cr, ET reported, citing sources.

The report added that the VC firm is currently looking to launch its first fund of $300 Mn to $400 Mn since its rebranding last year. Z47 is likely to make more secondary stake sales from its India portfolio, which includes names like Razorpay, OfBusiness, and Practo

The exit comes at a time when Ola Electric has seen major stake sales by its early backers. Earlier this year, Hyundai sold its entire stake in the EV company. Kia also diluted its stake in the company. Later in September, Japanese investor SoftBank decreased its holding in the company by selling 9.4 Cr equity shares, amounting to 2.15% of the company’s total share capital, via a series of open market transactions.

The exits come when Ola Electric is struggling on multiple fronts, plagued by high losses, after-sale service complaints, declining market share in the electric two-wheeler segment, and more.

As a result, the company’s shares have tanked this year and touched an all-time low of INR 34.73 during the intraday trading on the BSE yesterday. The stock is down over 58% year to date.

On the financial front, the company reported a 15% decline in its net loss to INR 418 Cr in Q2 FY26 from INR 495 Cr in the same quarter last year. Revenue slumped 43% to INR 690 Cr during the quarter from INR 1,214 Cr in the second quarter of FY25.

Amid declining EV sales, Ola Electric is focusing on expanding its cell business to foray into residential and commercial battery energy storage system segment.

Recently, the company received its shareholders’ nod to raise up to INR 1,500 Cr to ramp up its cell business, expand battery energy storage systems, strengthen post sales production, and for new product development.