Ola Electric Mobility to Raise Funds of Rs 1,700 Crore

Ola Electric Mobility has decided to pursue a fundraising strategy, aiming to secure up to Rs 1,700 crore via debt instruments, as outlined in a board meeting held today. According to the official filing, the company plans to acquire funds through term loans, working capital facilities, or the issuance of Non-Convertible Debentures (NCDs) and other permissible debt securities. The fundraising may be conducted in one or multiple tranches through a private placement approach or any other legally sanctioned method.

Funding Purpose and Borrowing Limits

This initiative aligns with the borrowing limits sanctioned by shareholders and aims to bolster the company’s growth trajectory and operational capabilities. The management also highlighted that the trading window has remained closed since April 1, 2025, with plans to reopen it 48 hours post the announcement of its financial results.

Challenges Faced by Ola Electric Mobility

This development occurs amid heightened regulatory scrutiny and financial hurdles confronting the company. Earlier this year, SEBI issued a warning to Ola Electric for breaching disclosure regulations after the company announced a retail expansion on social media prior to notifying the stock exchanges. Additionally, a discrepancy was noticed between the reported 25,000 vehicle sales and 8,600 VAHAN registrations, which the company attributed to vendor-related delays.

Market Position and Financial Performance

Despite these challenges, the company led by Bhavish Aggarwal managed to capture the second position in the electric two-wheeler market as of April, with TVS Motor retaining the top spot. Although Ola Electric is yet to present its Q4 financial results, it previously reported a decline of 19.4% in operating revenue year-on-year, dropping from Rs 1,296 crore to Rs 1,045 crore. During this period, the net loss expanded by 50%, amounting to Rs 564 crore.