Z47, Tiger Global Cut Stakes In Ola Electric

Two of Ola Electric’s early backers, Z47 and Tiger Global Management, have pared down their holdings in the startup during the first quarter of the ongoing financial year (Q1 FY26).

As per the data shown on the exchanges, Z47 and Tiger Global Management have diluted 0.81% and 0.21% stake in Ola Electric, respectively.

As per the share price closed yesterday (Aug 5), Z47 is estimated to have earned more than INR 144 Cr by diluting its shares. On the other hand Tiger Global is expected to have bagged more than INR 36.60 Cr as a part of this deal. It is pertinent to note that this estimation is based on the previous day’s share closing price.

This comes on the back of South Korean automobile giant Hyundai Motor Company exiting Ola Electric after offloading its 2.47% stake or 10.8 Cr shares in the company in June. During the same time, Kia Corporation also diluted a 0.62% stake or 2.7 Cr shares in Ola Electric as part of a bulk deal.

Ola Electric recently announced financial results for the first quarter of FY26. As per the financials, the startup’s consolidated net loss widened to INR 428 Cr in the period under review, up 23.3% from INR 347 Cr reported during the same period last year.

However, the loss nearly halved (50.8%) sequentially.

The company attributed the YoY spike in its net loss to underwhelming sales volume. Ola Electric delivered 68,192 EVs in the quarter under review, which is much lower than around 1,25,198 EVs delivered in the same quarter last year. 

As per the company, its auto business has turned EBITDA positive in the month of June. Ola electric also managed to cut down its expenses YoY by 42.4% to INR 1,065 Cr in the quarter under review.

While there are recovery signs in the balance sheet, Ola Electric’s share value has declined nearly 52% on a year-to-date basis.

In June, Ola Electric founder Bhavish Aggarwal reportedly paid around INR 20 Cr in cash to top up collateral for borrowings against shares on the back of a continuous decline in share price. 

In May, the company’s board approved a proposal to raise up to INR 1,700 Cr debt via non-convertible debentures (NCDs), term loans, working capital facilities, or any other eligible debt securities to meet its operational obligations amid continued operating loss. 

As per Vahan data, Ola Electric received registrations for 16,510 EV units in the month of July, an 18% decline from 20,234 registrations recorded in June. Meanwhile, the registration number declined nearly 60% on a YoY basis from 41,802 units in July 2024.