Ola Electric Secures Board Approval to Raise INR 1,500 Crore via Securities

In an exchange statement on 25 October, Ola Electric Mobility stated that the board had authorised funding up to INR 1,500 crore through the issuance of securities. A plan to raise money through the issuance of shares or convertible securities, including warrants, through rights issues, qualified institutional placements, private placements, or any other method allowed by applicable laws has been reviewed and approved by the board, according to the Bengaluru-based electric vehicle manufacturer. No more than INR 1,500 crore will be raised in total. The EV manufacturer did not reveal why the money was being raised.

Ola’s Fund Raising History

The board of Ola Electric authorised the issuing of Non-Convertible Debentures (NCDs) or any other suitable debt securities on May 22 of this year in order to raise 1,700 crore. Additionally, the business stated that it will raise money through working capital facilities and term loans.

The company had stated in a filing that the Board of Directors of Ola Electric Mobility Limited ("the company"), at its meeting on May 22, 2025, has, among other things, considered and approved the proposal of fundraising by borrowing funds within the borrowing limits approved by the shareholders of the company. This fundraising will be conducted through the issuance of Non-Convertible Debentures (NCDs) or any other eligible debt securities in one or more tranches, on a private placement basis, or through such other methods as may be permitted under applicable laws.

Ola Electric to Expand Through Fund Raising

Ola Electric was founded in 2017 and raised more equity when it went public in August 2024. Market share erosion and regulatory enquiries, such as discrepancies between reported sales and car registrations, have been challenges for the company since listing.

Due to increased competition from car giants like Bajaj Aito and TVS Motor Company, the company's market share has also decreased. As the electric scooter manufacturer struggled with a steep decline in sales, Ola Electric reported a larger net loss for the April–June quarter (Q1) of 2025–26 (FY26). The company's consolidated loss for the same time last year was INR 428 crore, up 23% from INR 347 crore.