Ola Electric said its board has approved a fundraising of up to ₹1,500 crore through the issuance of equity shares or other eligible securities, as the electric two-wheeler maker looks to shore up capital amid weak sales and a declining market share.
The proposed fundraising could be undertaken through multiple routes, including the issuance of equity shares and/or securities convertible into or exchangeable for equity shares. The fundraise will be subject to shareholders’ and other regulatory approvals.
The latest fundraising effort comes just three months after Ola Electric raised ₹780 crore through a qualified institutional placement (QIP). Ola Electric reported a 29% year-on-year decline in sales to 13,849 units in August, even as rivals including TVS Motor, Bajaj Auto and Ather Energy continued to post growth.
The fundraise is also crucial as Ola Electric scales up its cell manufacturing capacity and expands into the battery energy storage business under its Ola Shakti and Mahashakti brands.
In May, the company’s board approved a ₹2,000-crore investment in two wholly owned subsidiaries — ₹1,500 crore in Ola Electric Technologies for EV manufacturing and ₹500 crore in Ola Cell Technologies for battery-cell production.
Ola Electric is ramping up production at its Gigafactory, with capacity expected to reach 6 GWh by September from 2.5 GWh.
Meanwhile, Ola Electric’s leadership churn also continued, with chief operations officer Hyun Shik Park resigning from the company with effect from the close of business on Saturday, citing personal reasons.
The company also announced the reappointment of Manoj Kumar Kohli and Shradha Sharma as non-executive independent directors for a second term of five years commencing December 6, 2026.