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Ola Electric’s tech arm to raise nearly $100 Mn via preferential share

EntrackrEntrackr · 2m ago
Ola Electric’s tech arm to raise nearly $100 Mn via preferential share
Medial

Ola Electric’s tech arm to raise nearly $100 Mn via preferential share Ola Electric Mobility Limited has announced that its material wholly owned subsidiary, Ola Electric Technologies (OET), has received board and shareholder approval to raise Rs 877.64 crore (nearly $100 million) through issuance of preference shares. According to a stock exchange filing on Tuesday, the fundraise will be executed via the allotment of up to 87.76 crore non-cumulative and non-participating 0.001% Series A Optionally Convertible Redeemable Preference Shares (OCRPS), each having a face value of Rs 10, to Ola Cell Technologies (OCT), another wholly owned subsidiary of the company. The issuance will be carried out on a preferential basis through private placement in one or more tranches. This move follows shareholder approval in August, which allowed variation in the objects and utilization of IPO proceeds. At that time, Ola Electric had said it secured approval to reallocate IPO proceeds for capital deployment in India’s electric two-wheeler market. Ola Electric Technologies (OET) is Ola Electric’s core manufacturing and technology arm, leading electric two-wheeler production and battery innovation. OET drives the scaling of Ola’s EV ecosystem, from vehicle platforms to advanced battery technology. Its wholly owned subsidiary, Ola Cell Technologies (OCT), focuses on indigenous cell R&D and large-scale manufacturing, supporting vertical integration and reducing dependence on imported cells. In August, Ola Electric jumped to second position among electric two wheeler manufacturers. The company's operating revenue reduced 50% to 828 crore in Q1 FY26, compared to Rs 1,644 crore in the previous year of the same quarter. Its losses went up 23.3% to Rs 428 crore in Q1 FY26, compared to Rs 347 crore in the same quarter last year. At the end of today's trading session, Ola Electric’s share price traded at Rs 56.95 with a market capitalization of Rs 25,119 crore (approx $2.8 billion).

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Z47 stake in Ola Electric falls below 2% after recent partial exit

EntrackrEntrackr · 4m ago
Z47 stake in Ola Electric falls below 2% after recent partial exit
Medial

Z47 stake in Ola Electric falls below 2% after recent partial exit Ola Electric’s early backers, Z47 (formerly Matrix Partners India) and Tiger Global Management, have trimmed their stakes in the Bengaluru-based company during the April–June 2025 quarter, as per stock exchange disclosures filed for the period. Z47 reduced its holding from 2.72% to 1.93%, a cut of approximately 0.81 percentage points. Based on an average share price of Rs 41, the VC firm is estimated to have earned around Rs 147–150 crore from the sale. Tiger Global also marginally reduced its stake from 3.45% to 3.24%, with an estimated Rs 39–45 crore. Its remaining stake, held via Internet Fund III, is currently valued at Rs 587 crore. The reduction in its stake in Ola Electric comes as Z47 actively explores secondary stake sales in other portfolio companies, including OfBusiness, Razorpay, and Dailyhunt’s parent VerSe. Despite the partial exits, both Z47 and Tiger Global remain on Ola Electric’s cap table with meaningful minority stakes. SoftBank, AlphaWave, Temasek, and Citigroup are some notable investors in the EV firm. Ola Electric’s revenue continues its downward spiral with yet another sharp drop in the latest quarter. Its revenue from operations decreased by 49.6% to Rs 824 crore in Q1 FY26, compared to Rs 1,644 crore in Q1 FY25. Its grew 23.3% year-on-year to Rs 428 crore during the same period. The company is currently trading at Rs 40.7 per share (as on 02 PM) with a total market capitalization of Rs 17,925 crore ($2.1 billion). Ola Electric also slipped to the third spot in July with 17,848 registrations, down 57% YoY, as its market share fell to 17.35%. Meanwhile, Ather Energy narrowed the gap with 16,231 units and a 15.78% share. The dip adds to Ola Electric’s mounting challenges as rivals like TVS and Bajaj consolidate their positions at the top.

Ola Electric’s 2W market share declines to 24.5% in November

EntrackrEntrackr · 1y ago
Ola Electric’s 2W market share declines to 24.5% in November
Medial

India's electric two-wheeler market recorded a 29% year-on-year growth in November, with total sales exceeding 118,000 units. However, on a month-on-month basis, the segment registered a nearly 15% decline compared to October, according to Vahan data. Ola Electric retained its position as the market leader with 29,191 units sold, which accounted for 24.54% of the EV two-wheeler market. The Bhavish Aggarwal-led company’s market share has seen fluctuations over the past six months. In October, its market share rose to 30% from 27% in September. However, this remains lower than its earlier shares, which were 32% in August, 39% in July, and a peak of 49% in June. TVS Motor and Bajaj Auto remained in close competition in November with sales of 28,200 and 27,400 units, respectively. The two companies also closed the gap with Ola Electric, capturing 23% and 22% of the market share, respectively. Ola Electric’s arch rival Ather Energy secured the fourth position with 15,800 units, while Hero MotoCorp's electric division recorded 3,300 units. Ather, which is also on the verge of listing on the stock exchange, controls 11% share in EV two wheelers space. Similar to its performance in the EV two-wheeler market, Ola Electric’s share price has also seen fluctuations in recent months. In November, its shares were trading at Rs 72.72, nearly 54% lower than their peak of Rs 157.53 in mid-August. However, last week, the stock surged by nearly 30% following the announcement of a new scooter range. This new range, designed primarily for commercial use in commerce and deliveries, is expected to boost the company’s sales in the coming months. In Q2, Ola Electric recorded a 26% decline in its operating revenue to Rs 1,214 crore when compared to Rs 1,644 crore in Q1 FY25. However, the firm registered 39% year-on-year increase in revenue from Rs 873 crore in Q2 FY24. The company posted a net loss of Rs 495 crore during the September quarter.

Ola Electric can achieve EBITDA breakeven by FY27: Goldman Sachs

EntrackrEntrackr · 1y ago
Ola Electric can achieve EBITDA breakeven by FY27: Goldman Sachs
Medial

Ola Electric, the Bengaluru-based electric vehicle (EV) manufacturer, is projected to reach EBITDA breakeven by the fiscal year ending March 2027, according to a recent report by Goldman Sachs. The company is expected to see its revenue grow at 2.5 times the current rate, with a fivefold increase in vehicle volume over the next three years. “We expect FY24 to FY30E revenue growth of +40% CAGR (vs FY22 to FY24 of +240%), implying FCF breakeven (ex-subsidies) in FY30E. We expect OLAE to achieve 11.9% / 27% EBITDA margin / ROIC by FY30E vs -19.7% / -32.0% pc in FY24,” said the Goldman Sachs report. Despite the promising projection, Ola Electric’s revenue growth in FY24 and FY21 Q1 has been modest. Its revenue from operations grew only 2.8% to Rs 1,644 crore in Q1 FY25 from Rs 1,598 crore in Q4 FY24. The company, however, managed to control its losses by 16.6% to Rs 347 crore in Q1 FY25. During the last fiscal year (FY24), it reported Rs 5,010 crore revenue and Rs 1,584 core loss. Goldman Sachs has issued a “buy” rating for Ola Electric, with a 12-month target price of Rs 160 per share, suggesting a potential 50% upside. Currently, Ola Electric shares are trading at Rs 113 per share. The brokerage firm expects Ola Electric’s revenue to increase by over 40% from FY24 to FY27. In contrast, TVS Motor, Bajaj Auto, and Hero MotoCorp are projected to grow by 16%, 19%, and 10%, respectively. As per the report, Ola Electric’s products are approximately 18% cheaper on a running cost basis when compared to its EV peers. Ola Electric’s market share rose from 21% in FY23 to 35% in FY24, and further to 49% in Q1 FY25, according to Jefferies. However, the share dropped to 39% in July and 32% in August. In August, TVS and Bajaj each held a 19% market share, while Ather Energy had a 12% share. The competition in the EV sector is expected to intensify as Ola Electric prepares to launch its motorcycle and electric three-wheeler (e-rickshaw) in the coming months. Meanwhile, Ather Energy, which is also gearing up for a public listing, has announced plans to begin manufacturing motorcycles as well.

Bhavish Aggarwal pledges Ola Electric shares for Krutrim’s debt

EntrackrEntrackr · 1y ago
Bhavish Aggarwal pledges Ola Electric shares for Krutrim’s debt
Medial

Ola Electric’s founder Bhavish Aggarwal has pledged his Ola Electric shares to raise debt funding (via issuing debentures) for its artificial intelligence startup Krutrim SI Designs. Bhavish Aggarwal, the promoter, entered into an agreement with Axis Trustee and Krutrim Data Center Private Limited on November 23. The agreement aims to provide assurance regarding certain debentures issued by Krutrim Design, Ola Electric’s internal document accessed by Entrackr show. As per the document, Bhavish Aggarwal held 132.39 crore shares of Ola Electric, accounting for 30.02% of the company. He pledged 4.83 crore shares, representing 1.10% of Ola Electric's equity or 3.65% of his total shareholding, as an encumbrance. Entrackr has reached out to Ola Electric for more details. Artificial intelligence startup Krutrim SI Designs has raised around $75 million to date and entered into a coveted unicorn club this year. Its investors include Z47 (formerly Matrix), Sarin Family, and others. On Monday, Aggarwal revealed plans to open 4,000 Ola Electric stores in December. Ola Electric is currently trading at Rs 91.79 with a total market capitalization of 40,487 crore (approximately $4.82 billion). In Q2, Ola Electric recorded a 26% decline in its operating revenue to Rs 1, 214 crore when compared to Rs 1,644 crore in Q1 FY25. However, the firm registered 39% year-on-year increase in revenue from Rs 873 crore in Q2 FY24. The company posted a net loss of Rs 495 crore during the September quarter.

Ola Electric market share drops more than 30% in last two months

EntrackrEntrackr · 1y ago
Ola Electric market share drops more than 30% in last two months
Medial

Electric scooter manufacturer Ola Electric, which recently went public, has registered a major downfall in its market share among the electric two wheelers segment in the past two months. Ola Electric market share subsequently slipped to 39% in July and further down to 33% in August (month-to-date), according to investment banking and capital markets firm Jefferies. At the same time, TVS regained market share at 19% at August (MTD) against 15% in Q1 FY25. Ola Electric has emerged as the dominant OEM in India’s electric two-wheelers market as its market share rose from 21% in FY23 to 35% in FY24 and further to 49% in Q1 FY25, the report added. Jefferies attributes expansion of product portfolio and aggressive pricing to the rise in Ola Electric’s market share. During FY24, Ola Electric sold 3,29,618 scooters, almost 2X as compared to FY23. This also reflected in the company’s scale which grew nearly two-fold to Rs 5,010 crore in FY24 from Rs 2,631 crore in FY23. As per the report, Bajaj’s market share has also risen from 11% in FY24 and 12% in Q1 FY25 to 18% in August MTD. Hero is still lagging among incumbents with 5% market share in August while Honda has no-play in the electric space. Meanwhile, the Bhavish Aggarwal-led company has announced plans to launch affordable electric motorcycles Roadster which will be ready for delivery by Diwali next year. Despite the fall in volume, the electric two wheeler space continues to be dominated by Ola Electric followed by TVS, Bajaj Auto, Ather Energy and Hero MotoCorp. Interestingly, Jefferies’ report has not mentioned anything on Ather, which recently turned unicorn and is on the verge of becoming the second public company from the EV startup ecosystem. Currently, Ola Electric’s shares are trading at Rs 128, up from the initial public offering price of Rs 76 per share.

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