In 2024, Bhavish Aggarwal presided over a rare feat in Indian startups, running three unicorns in parallel. Krutrim, the group’s artificial intelligence venture, crossed a $1-billion valuation, Ola Electric Mobility Ltd. listed at a valuation of about $4.5 billion, and Ola Consumer, formerly Ola Cabs, was valued at around $2 billion. By the end of 2025, much of that optimism has dissipated as execution challenges have surfaced across all three businesses.
At the core of the stress is Aggarwal’s attempt to scale capital-intensive manufacturing, a cash-burning ride-hailing platform and an ambitious AI programme simultaneously. The breadth of that push has strained management bandwidth and capital allocation, leaving each vertical grappling with delays, strategic pivots and rising investor scrutiny.
India’s first AI unicorn
Krutrim, which rode the AI funding wave to become the country’s first AI unicorn in 2024, had outlined plans spanning large language models, semiconductor design and a domestic cloud alternative. Over the past year, progress has slowed across multiple fronts. Product timelines have slipped, senior executives have exited and several initiatives have been shelved. The consumer-facing AI app, Kruti, has been deprioritised amid funding constraints, while the chip effort has been wound down, leaving cloud services as the primary focus.
Aggarwal had committed an initial Rs 2,000 crore to Krutrim, with plans to invest up to Rs 10,000 crore by 2026. With cash burn mounting across group companies and debt funding proving difficult, it now appears unlikely that much of this capital will be deployed as originally envisaged.
Declining two-wheeler business
Ola Electric’s electric two-wheeler business has also lost momentum. Once commanding more than 30% market share, the company slipped below 10% by November 2025, trailing rivals such as TVS Motor, Bajaj Auto, Ather Energy and Hero Vida. Quality concerns, after-sales issues and intensifying competition have weighed on volumes, prompting the company to shelve plans for electric cars and three-wheelers and to postpone new scooter launches.
With the core EV business slowing, Ola Electric is pivoting toward ancillary segments such as spare parts and battery energy storage through its BEES (battery energy storage system) offering under Ola Shakti. The market is dominated by incumbents such as Exide and Amara Raja, and building a nationwide distribution network will require sustained capital at a time when cash flows remain under pressure.
Ola Electric reported negative operating cash flow of Rs 343 crore for the six months ended September 2025. Lenders have declined proposals to raise Rs 1,700 crore in debt since May, though shareholders have approved Rs 1,500 crore through a mix of equity and debt.
The ride-hailing arm has also struggled. Ola Consumer’s valuation has fallen sharply from its 2021 peak, with trip volumes declining as competitors such as Rapido gain share. Analysts attribute the slide to strategic drift and slower adoption of subscription-based pricing models.
There have been some signs of financial tightening. Aggarwal sold a portion of his personal stake to clear promoter-level loans, bringing pledged shares to zero. Losses at Ola Electric narrowed in the September quarter, and the company recently expanded its Hyperservice initiative with new centres starting in Bengaluru. Whether these steps are sufficient to stabilise the group remains the central question heading into 2026.