Ola Electric Settles Debts with Rosmerta Group

In a regulatory statement on 25 March, Ola Electric Technologies Private Limited, a division of Ola Electric Mobility Limited, stated that it had settled its financial disagreements with the Rosmerta Group and that as a result, insolvency proceedings had been withdrawn against it. Earlier insolvency filings against Ola Electric Technologies were filed by the Rosmerta Group, which cited unpaid debts. According to earlier media reports, Rosmerta Digital Services demanded payment of slightly over INR 22 crore (about $2.5 million) in unpaid debts, while Rosmerta Safety Systems requested payments of almost INR 2.5 crore. The National Company Law Tribunal (NCLT) in Bengaluru received a request from Rosmerta to withdraw its insolvency proceedings after Ola Electric declared on March 25 that all outstanding debts had been resolved amicably. The business underlined its dedication to keeping solid business ties and making sure that any commercial concerns are promptly resolved.

Ola Clarifying the Mismatch of Data

This decision was made in the midst of Ola Electric's operational optimisation efforts. Ola Electric also claimed that discussions with its vehicle registration vendors were the cause of a discrepancy in February between government registration data and sales data supplied by the company. The government has requested details on the issue, but the corporation claims that the backlog caused by the data mismatch has been resolved.  According to the corporation, its sales are still strong, and the brief backlog in February was brought on by continuous discussions with our partners that handle vehicle registrations. With daily registrations surpassing 50% of its three-month daily sales average, this backlog is being quickly cleared. By the end of March 2025, the remaining backlog will be completely resolved, with almost 40% of the February backlog already cleared. On March 24, the shares of Ola Electric Mobility Limited closed at INR 55.72 per share. Ola Electric's shares are down roughly 27% since listing in August, however they have somewhat recovered from a record low since it notified investors of the insolvency petition.

Over 1,000 Workers are Let go by Ola Electric

According to a media agency, Ola Electric Mobility Ltd., under the leadership of Bhavish Aggarwal, is laying off over 1,000 staff and contract workers in an attempt to reduce the company's growing losses. As the electric two-wheeler (2W) manufacturer goes through a significant reorganisation, the employment cutbacks impact several departments, including procurement, fulfilment, customer relations, and charging infrastructure. In less than five months, this is the company's second round of layoffs. About 500 workers were let go by Ola Electric in November 2024, and the most recent round of layoffs represents more than 25% of the company's 4,000-person employment as of March 2024. However, since they are not included in the company's formal disclosures, contract workers are not included in this statistic.