In August 2024, Ola Electric listed on the stock markets to much fanfare, and raised more than INR 5,500 Cr to invest towards future growth and building out its full electric vehicle stack. A few days after that, Bhavish Aggarwal outlined Ola Electric’s grand plans, peppered with some suspect claims — this is important as we will see later.

But not even a year after that IPO, Ola Electric is now considering raising fresh funds, as it looks to get back on track after months of slow growth, mounting regulatory scrutiny over sales claims and a major dip in the stock price. The Bhavish Aggarwal-led company has also lost its top spot in the EV market.

According to data from the government-run Vahan portal, Ola Electric slipped from leadership position in the electric two-wheeler segment in April 2025 to TVS Motor. The Bengaluru-based company registered 19,709 vehicles last month, down 42% year-on-year with 21.46% market share.

Ola Electric’s Second Raise In 10 Months

In this current situation, Ola Electric’s board has approved the plans to raise INR 1,700 Cr in one or multiple tranches through non-convertible debentures (NCDs) and other eligible debt securities. However, it did not disclose other specific details, including the intended use of proceeds.

So, what brings Ola Electric back to the fundraising table so soon after its massive IPO raise?

The answer to this is not clear. But what we can say is that Ola Electric has not even utilised the full proceeds from its IPO as of March 2025, according to ratings agency ICRA.

For one, more than half of the INR 5,500 Cr raised in the IPO has been left in fixed deposits and bank accounts, earning nearly INR 54 Cr in interest income for the company in 10 months.

Of the quantum raised, INR 1,200 Cr was specifically to be used for expanding the capacity of Ola Electric’s battery cell manufacturing plant from the initial test capacity of 1.4GWh to 5GWh by February 2025. The company........

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