Bhavish Aggarwal, CEO, Ola Electric
EV maker Ola Electric Mobility on Thursday approved a Rs 2,000 crore investment into its wholly-owned subsidiaries focused on electric vehicle and battery manufacturing. The company is looking to double down on localisation and vertical integration amid rising competitive pressure and profitability concerns.
The board cleared a Rs 1,500 crore infusion into Ola Electric Technologies (OET) and Rs 500 crore into Ola Cell Technologies (OCT) through compulsory convertible preference shares, according to a stock exchange filing.
The company said the funds would be used to support “business requirements”, without disclosing a detailed breakup.
The investment comes at a time when the Bhavish Aggarwal-led EV maker is under pressure to improve profitability after a slowdown in sales growth and market share erosion in India’s electric two-wheeler market.
Recently, rating agency ICRA in April downgraded Ola Electric Technologies, citing weak sales performance, continued losses and delays in achieving profitability, despite ongoing efforts to improve unit economics and reduce costs.
The majority of the market share is currently captured by legacy manufacturers such as Bajaj Auto and TVS Motor Company, while rivals including Ather Energy, Hero MotoCorp and River have also done well.
Cell business sees scale up
The filing showed Ola Electric Technologies’ revenue declined to Rs 4,717 crore in FY25 from Rs 5,149 crore a year earlier, reflecting pressure on the core EV business. In contrast, Ola Cell Technologies’ revenue rose sharply to Rs 73 crore from Rs 3.97 crore in FY24, highlighting the scale-up of its battery operations.
ICRA noted that Ola’s battery manufacturing ambitions could continue attracting investor interest, particularly around next-generation cell technologies. The rating agency in its note said “any successful fundraise for the cell business would be important for stabilising the battery unit and improving its medium-term outlook.”
The latest capital infusion also underscores Ola Electric’s continued focus on battery localisation, a key strategy for Aggarwal’s to build an integrated EV manufacturing stack spanning vehicles, batteries, software and cells.
India remains heavily dependent on imports from countries such as China and South Korea for battery cells, one of the costliest components in electric vehicles. Ola Cell Technologies, incorporated in 2022, handles battery and cell manufacturing operations, while Ola Electric Technologies, incorporated in 2021, oversees EV manufacturing and related services.
The filing comes weeks after reports that Ola Electric was looking to separately raise around Rs 2,000 crore for Ola Cell Technologies, indicating the battery business could emerge as a larger standalone strategic asset over time.
The board cleared a Rs 1,500 crore infusion into Ola Electric Technologies (OET) and Rs 500 crore into Ola Cell Technologies (OCT) through compulsory convertible preference shares, according to a stock exchange filing.
The company said the funds would be used to support “business requirements”, without disclosing a detailed breakup.
The investment comes at a time when the Bhavish Aggarwal-led EV maker is under pressure to improve profitability after a slowdown in sales growth and market share erosion in India’s electric two-wheeler market.
Recently, rating agency ICRA in April downgraded Ola Electric Technologies, citing weak sales performance, continued losses and delays in achieving profitability, despite ongoing efforts to improve unit economics and reduce costs.
The majority of the market share is currently captured by legacy manufacturers such as Bajaj Auto and TVS Motor Company, while rivals including Ather Energy, Hero MotoCorp and River have also done well.
Cell business sees scale up
The filing showed Ola Electric Technologies’ revenue declined to Rs 4,717 crore in FY25 from Rs 5,149 crore a year earlier, reflecting pressure on the core EV business. In contrast, Ola Cell Technologies’ revenue rose sharply to Rs 73 crore from Rs 3.97 crore in FY24, highlighting the scale-up of its battery operations.
ICRA noted that Ola’s battery manufacturing ambitions could continue attracting investor interest, particularly around next-generation cell technologies. The rating agency in its note said “any successful fundraise for the cell business would be important for stabilising the battery unit and improving its medium-term outlook.”
The latest capital infusion also underscores Ola Electric’s continued focus on battery localisation, a key strategy for Aggarwal’s to build an integrated EV manufacturing stack spanning vehicles, batteries, software and cells.
India remains heavily dependent on imports from countries such as China and South Korea for battery cells, one of the costliest components in electric vehicles. Ola Cell Technologies, incorporated in 2022, handles battery and cell manufacturing operations, while Ola Electric Technologies, incorporated in 2021, oversees EV manufacturing and related services.
The filing comes weeks after reports that Ola Electric was looking to separately raise around Rs 2,000 crore for Ola Cell Technologies, indicating the battery business could emerge as a larger standalone strategic asset over time.
