Ola Electric weighs fresh fundraising three months after ₹780-crore QIP
The latest fundraising also comes as Ola continues to commit capital towards its manufacturing operations
Ola Electric is planning to seek additional funding, with its board scheduled to discuss issuing new shares or other securities during a meeting on September 5. This fresh round of capital raising follows a QIP that secured ₹780 crore just three months ago, as the electric vehicle (EV) manufacturer continues to operate at a loss. In the first quarter of fiscal year 2027, Ola Electric's revenue dropped by 45% compared to the previous year, while the net loss shrank to ₹336 crore from ₹428 crore.
The upcoming fundraising comes at a time when Ola Electric is investing heavily in its manufacturing operations. In May, the company's board approved a substantial investment of ₹2,000 crore for its two wholly-owned subsidiaries. This includes ₹1,500 crore for Ola Electric Technologies, which focuses on EV manufacturing, and ₹500 crore for Ola Cell Technologies, dedicated to battery-cell production.
The aim of these investments, made through compulsory convertible preference shares, is to help the subsidiaries meet their business needs, boost localisation and automation, and lower operating costs.
Ola Electric has recently launched the S1Z, a mass-market scooter utilizing Bharat Cell LFP technology, and has received ₹95.81 crore under the Production-linked incentive (PLI)-Auto scheme. The company also intends to expand its product range by introducing dealer-operated stores in addition to its existing company-owned retail network, with the goal of increasing its market reach across India.
Geographically, Ola Electric is working on strengthening its presence in the North and East regions while replicating its successful strategies in the South and West areas.
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