Ola Electric Moves to Raise INR 1,500 Crore as It Accelerates Its Next Phase of Growth

India's flagship electric vehicle maker, Ola Electric Mobility, has said it will increase up to INR 1,500 crore through a share or convertible security issue. The decision, cleared by the board of directors on October 25, is another notable move in Ola Electric's current capital strategy for enhancing its financial foundation and facilitating long-term growth.

The fundraising, as per the company's filing, may be done through a range of instruments like rights issues, qualified institutional placements (QIP), private placements, or any other legally permissible means. The aggregate amount to be raised will be INR 1,500 crore or less, although the company has refrained from giving specific information on fund deployment.

This move comes after a previous fundraising effort in May 2025, when the board sanctioned the issuance of Non-Convertible Debentures (NCDs) and other debt securities of INR 1,700 crore. On that occasion, Ola Electric had also raised funds through working capital facilities and term loans, reflecting a large financing plan to carry on operations and maintain liquidity as market conditions changed.

Launched in 2017, Ola Electric listed on the stock exchange in August 2024, one of India's earliest EV start-ups to list on the bourses. The firm has, however, witnessed a series of challenges since listing, such as market share loss, regulatory pressure, and growing competition from market stalwarts like Bajaj Auto and TVS Motor Company.

The EV manufacturer posted a net loss of INR 428 crore during Q1 FY26, up 23 per cent from INR 347 crore in the comparable quarter of last year. In spite of these challenges, the company continues to work towards increasing its production, diversifying its product lineup, and broadening its charging station network.

Ola Electric's latest fundraising move indicates another attempt to stabilise its financial performance and invest in growth in the future. With the Indian EV ecosystem changing at a frenetic pace, accessing fresh capital will become vital for the company to maintain its leadership status, improve operational efficiency, and continue to innovate in an industry that is at the core of India's clean mobility aspirations.

The next few months will prove to be decisive for Ola Electric as it juggles strategic investments with profitability targets against a fiercer EV competition.