Funding · Mobility & Logistics

Ola Electric invests two billion rupees in subsidiaries

What they do

Ola Electric manufactures electric scooters and batteries for energy storage

The board approved a ₹2,000 crore internal investment in its tech units

This move supports growth despite recent revenue declines and losses

Ola Electric's board approved a ₹2,000 crore cumulative investment in its subsidiaries.
The company will infuse ₹1,500 crore into Ola Electric Technologies Pvt Ltd (OET).
Another ₹500 crore will go to Ola Cell Technologies Pvt Ltd (OCT).
These funds come from internal sources via compulsory convertible preference shares issued at par.
The investment plan targets completion by May 15, 2027.
ICRA downgraded OET's rating due to sales volume underperformance and market share pressure.
Ola Electric is also exploring external funding for its battery arm via minority stake sale.
No deal has been finalized with sovereign wealth or global infrastructure investors yet.

The investment signals confidence in long-term growth despite current financial headwinds.
It addresses execution and funding risks identified by credit rating agency ICRA.
Internal funding avoids immediate dilution while supporting critical manufacturing capabilities.
The move comes as the company seeks to stabilize operations after recent losses.

OET handles manufacturing and supply of EVs across the value chain.
OCT focuses on battery cell manufacturing, processing, assembly, repair, and distribution.
Products include S1 series scooters, Roadster motorcycles, and Shakti commercial vehicles.
The company also produces energy storage systems and solar controllers.
Tech specs feature LFP cells and the 4680 Bharat Cell technology.
OET reported FY25 turnover of ₹4,717.48 crore, down from FY24.
OCT saw significant growth with FY25 turnover rising to ₹73 crore.
Q3 FY26 operating revenue fell 55% year-on-year to ₹470 crore.
Net loss for Q3 FY26 was ₹487 crore, down 14% from the previous year.
Cash position stood at ₹1,991 crore as of end-December 2025.
Negative cash flow from operations was ₹866 crore over nine months ending Dec 2025.
March sales doubled compared to previous periods, showing improving momentum.
April market share reached 8.18% according to available data.
The service network includes 590 centers training one lakh third-party mechanics.

Complete the ₹2,000 crore internal investment by May 15, 2027.
Continue exploring external funding for the battery arm via minority stake sale.
Focus on debt repayment and organic growth using reallocated R&D funds.