Ola Electric is planning to raise up to Rs 2,000 crore by selling a stake in its battery arm, Ola Cell Technologies (OCT), according to sources.
The company is said to have appointed investment banks Avendus Capital and Motilal Oswal Financial Services to manage the fundraising process.
OCT owns the Tamil Nadu-based lithium-ion cell manufacturing plant with an operational capacity of 2.5 GWh and plans to scale it up to 6 GWh by the end of the current financial year. Ola Electric has been betting on its battery energy storage business alongside electric vehicles.
Bhavish Aggarwal’s latest announcement
Founder Bhavish Aggarwal recently announced a “structural reset”, with a renewed focus on the battery energy storage system (BESS) business under the Ola Shakti brand. The stake dilution could also help unlock the valuation of the battery infrastructure asset, with the company estimating a revenue potential of Rs 15,000-20,000 crore over the next few years.
Ola Electric currently uses its in-house developed “4680 Bharat cells” across its electric two-wheelers as part of its vertical integration and cost optimisation strategy. The company launched the Ola Shakti brand in October 2025, targeting portable energy storage solutions for residential and commercial customers.
The company has invested Rs 5,300 crore in manufacturing infrastructure, battery innovation and R&D platforms to build vertical integration across motors, batteries, cells, electronics and software, including its gigafactory for cell manufacturing in Tamil Nadu.
Backdrop behind the latest round of fundraising
The fundraising through a stake sale in the battery venture comes after Ola Electric’s earlier attempts to shore up its balance sheet through equity and debt failed to attract investors. In November 2025, shareholders approved a special resolution to raise up to 1,500 crore through a mix of equity shares and convertible securities. Prior to that, the company’s board had approved a1,700-crore debt fundraising plan in May.
The funding is also crucial as a continuous decline in two-wheeler sales and erosion in market share have strained the company’s cash flows. Ola Electric reported negative free cash flow of 781 crore in Q3FY26 after a 55% year-on-year drop in revenue to470 crore, while vehicle sales declined 61% to 32,680 units. The company also slipped out of the top five in monthly sales rankings in February, selling just 3,891 units and falling behind smaller rival Greaves Electric Mobility.
Shares of Ola Electric closed 5.37% higher at `24.31 on the NSE, marking its biggest single-day gain in more than two months after reports of the fundraising plans. An email sent to Ola Electric seeking comment on the fundraising plans and stake sale did not elicit a response.