NEW DELHI: Ola Electric Mobility Ltd is stepping up efforts to raise cash, including a proposed ₹2,000 crore stake sale in its battery arm, Ola Cell Technologies Private Ltd, after its board earlier approved a ₹1,500 crore fundraise through share or securities issuance.
The push comes as falling scooter sales and a weakening balance sheet tighten liquidity, even as the company doubles down on its capital-intensive cell business.
Mint looks at what is driving the company’s fundraising push.
Why is Ola Electric raising funds now?
The urgency stems from a sharp deterioration in its core business.
In 2025, Ola Electric’s sales more than halved to nearly 200,000 electric scooters, while rivals such as TVS Motor Co., Bajaj Auto and gained ground.
In the October-December quarter, revenue fell to a record low of ₹504 crore, while losses stood at ₹487 crore, compared with ₹564 crore a year earlier.
Analysts say the pressure is now visible on its balance sheet.
“(A) turnaround would necessitate Ola to have a strong cash balance to survive this phase. However, as per our calculations, Ola has turned net debt as of 9MFY26 ( ₹670 crore) from net cash of ₹160 crore in H1FY26. Upside risk could stem from a strategic stake sale in the battery business, resulting in meaningful cash infusion,” analysts at Emkay Global wrote in a 14 February note.
Why is the battery business central to the funding plan?
is currently the only company in India to have operationalized a lithium-ion gigafactory, with an initial capacity of 1.4 GWh at its Krishnagiri facility. The unit supplies cells for its electric scooters and underpins its newer battery energy storage system (BESS) business, Ola Shakti, which has begun selling home inverters.
The company expects the BESS segment to generate ₹1,000 crore in revenue by FY27, about a fourth of its FY25 annual revenue, making the battery business a critical growth driver.
At the same time, the business is capital-intensive. In its August 2024 initial public offering, where it raised ₹5,500 crore, Ola Electric had earmarked ₹1,227 crore of the total proceeds to expand its gigafactory capacity from 5 GWh to 6.4 GWh. That plan was later scaled back, with the funds reallocated to research and development and general corporate purposes after the company said 5 GWh would suffice.
More recently, however, the company indicated it would reach around 6 GWh capacity by March to meet demand from both scooters and BESS, without detailing the funding source, sharpening the need for fresh capital.
What fundraising options is the company exploring?
Ola Electric has been pursuing multiple avenues to shore up liquidity. Its board had approved a ₹1,500 crore fundraise through share or securities issuance, and the company had announced a ₹1,700 crore non-convertible debenture issue in May last year.
Neither has been formally closed so far. Over the past year, its shares have nearly halved to about ₹24 apiece, even as the Nifty Auto index rose about 20%, reflecting weak investor sentiment.
The latest move, to sell a stake in Ola Cell Technologies, is aimed at unlocking capital from a key business.
Can its fundraising efforts succeed?
Execution remains uncertain. The company’s previously announced fundraising plans are yet to be closed, and its share price performance has lagged the broader auto index.
This backdrop suggests limited investor appetite, even as the company seeks to raise capital through multiple routes, including a potential stake sale in its battery unit.
What regulatory risks does the battery business face?
A stake sale in the battery arm may also have to contend with regulatory overhangs. Under the government’s ₹18,000 crore production-linked incentive (PLI) scheme for advanced cells, Ola Cell had committed to building 20 GWh of capacity.
The company has since scaled that back to 6 GWh and is behind schedule, with 5 GWh originally slated for completion by December 2024.
Ola Electric has estimated potential penalties of up to ₹100 crore. Founder and CMD told investors during an earnings call on 13 February that the company is in discussions with the government to extend timelines under the PLI scheme.