Ola Electric Mobility Ltd has announced that its board has approved a plan to raise up to ₹1,700 crore through debt instruments. This strategic move comes as the company navigates a challenging market environment, including declining market share and regulatory hurdles.
📈 Fundraising Details
The Bengaluru-based electric vehicle manufacturer plans to secure the funds via the issuance of non-convertible debentures (NCDs), term loans, working capital facilities, or other eligible debt securities. The fundraising will be executed in one or more tranches through private placements or other permissible methods under applicable laws
🛠️ Purpose of the Fundraising
The capital infusion aims to bolster Ola Electric’s financial position amid a decline in market share and stock value. In April, the company lost its leadership position in the electric two-wheeler segment to TVS Motor, registering 19,709 vehicles—a 42% year-on-year drop—resulting in a market share of 21.46% .
Additionally, Ola Electric is facing operational challenges in Maharashtra, where the state’s Transport Department mandated the closure of over 100 showrooms due to a lack of mandatory trade certificates. Out of 131 showrooms, 107 were found lacking the necessary certifications, leading to the closure of 43 showrooms and the seizure of 214 vehicles .
📉 Financial Performance
For the quarter ended December, Ola Electric reported a consolidated net loss of ₹564 crore and revenue of ₹1,045 crore. The company’s shares closed at ₹51.50 on the BSE on May 22, 2025, marking a 0.27% increase but still below its IPO price of ₹76 .Moneycontrol
🔍 Conclusion
Ola Electric’s decision to raise ₹1,700 crore through debt instruments reflects its efforts to strengthen its financial position and sustain operations amid market challenges. The success of this fundraising initiative will be crucial for the company’s future growth and stability in the competitive electric vehicle market.
