Stake sale · Mobility & Logistics

Ola Electric seeks funds by selling stake in cell unit

By Startup Enthusiast · 30 April 2026

What they do

Ola Electric makes electric scooters and is expanding into battery manufacturing

The company plans to raise up to ₹2,000 Cr by selling a stake in its subsidiary Ola Cell Technologies

This move supports vertical integration but comes as parent revenue falls sharply and market share drops

Ola Electric is looking to raise ₹2,000 Cr through a secondary sale of shares in its subsidiary.
The sale involves equity in Ola Cell Technologies, which focuses on next-generation battery production.
ICRA downgraded the rating of the parent company due to significant underperformance in sales and revenue.
The parent company's market share in the two-wheeler EV segment has fallen from 30% to low double digits.
Ola Cell Technologies' board approved the issuance of convertible preference shares for this fundraising effort.
Investors are interested in the cell project because it reduces dependence on imported battery components.
The parent company reported a sharp decline in revenue and a trimmed net loss in recent quarters.
Discounts of up to ₹50K are being offered across the scooter portfolio to stimulate demand.

Vertical integration aims to improve cost competitiveness against import-heavy competitors.
Brand perception recovery lags behind operational improvements noted by rating agencies.
Battery energy storage entry adds execution risks despite strategic potential.

Ola Electric manufactures electric scooters including the S1 series and Roadster models.
The company also produces electric three-wheelers like the Shakti and Mahashakti lines.
It offers home energy storage systems with capacities ranging from 4.6 kWh to 9.2 kWh.
Pricing for scooters starts as low as ₹39,999 for the Gig model.
Premium models like the Roadster Pro start at ₹1,99,999.
The company operates 590 service centres and trains mechanics for EV maintenance.
It provides AI-powered diagnostics and proactive maintenance alerts for its vehicles.
Financing options include EMI tenures up to 60 months with interest rates starting at 6.99%.
The company claims a community base of over one million users.