Ola Electric: Revolutionizing Mobility with Clean Energy Solutions

Ola Electric, India’s largest mobility platform and one of the top ride-hailing companies globally, is leveraging its strong foundation in urban mobility to champion sustainable transportation. In this StartupTalky article, we will explore the journey of Ola Electric from its inception to how it became a key player in India’s EV revolution and growing innovation with the creation of the Future Factory, the world’s largest and most sustainable two-wheeler manufacturing facility.

The below article portrays Ola Electric's success story, its history, growth, funding, business model, hardships, challenges, competitors, and more.

Ola Electric - Company Highlights

Ola Electric - About
Ola Electric - Industry
Ola Electric - Founders and Team
Ola Electric - Startup Story
Ola Electric - Mission and Vision
Ola Electric - Name, Tagline and Logo
Ola Electric - Business Model
Ola Electric - Revenue Model
Ola Electric - Challenges Faced
Ola Electric - Funding and Investors
Ola Electric - Investments
Ola Electric - Mergers and Acquisitions
Ola Electric - Growth
Ola Electric - Advertisements and Social Media Campaigns
Ola Electric - Awards and Achievements
Ola Electric - Competitors
Ola Electric - Future Plans

Ola Electric - About

Ola Electric is driving India's emergence as the global hub for the electric vehicle (EV) revolution. As a pioneering EV company, they are working towards a brighter, safer, and greener future by building an ecosystem of products, services, and cutting-edge technology that will shape the next frontier of innovation. Their focus is deeply rooted in research and development, with expertise in design, engineering, and manufacturing that is dedicated to creating high-quality and accessible EVs.

From concept to production, Ola Electric is committed to owning and developing all core EV technologies and components. This includes everything from battery cells to electric vehicles, making them central to the future of sustainable transportation.

Ola Electric's R&D efforts extend beyond India, with facilities in the UK and the US, including their Battery Innovation Centre, where they are developing cutting-edge cell and battery technologies that will lead the industry into the future.

Ola Electric - Industry

India is setting an ambitious goal to boost the share of electric vehicle (EV) sales by 2030, targeting 30% for private cars, 70% for commercial vehicles, 40% for buses, and a massive 80% for two-wheelers and three-wheelers. This translates into a bold objective of having 80 million EVs on the roads by the end of the decade, all driven by a push for complete domestic production under the 'Make in India' initiative.

Globally, the electric vehicle market was valued at $255.54 billion in 2023 and is expected to skyrocket to approximately $2,108.80 billion by 2033, growing at a strong compound annual growth rate (CAGR) of 23.42% from 2024 to 2033.

In India, EV sales have been on the rise. By May 2024, EV sales surged by 20.88%, reaching 1.39 million units. In 2023, EV sales in India saw an even bigger leap, growing by 49.25% to 1.52 million units. Though still in its early stages, the Indian EV market is gaining significant momentum. According to Fortune Business Insights, the Indian EV market is projected to expand from $3.21 billion in 2022 to a whopping $113.99 billion by 2029, growing at a rapid CAGR of 66.52%.

This global shift toward EVs is creating exciting new opportunities for automotive suppliers, particularly in the Indian EV battery market, which is forecasted to grow from $6.77 billion in 2023 to $27.70 billion by 2028. This highlights the massive potential of India's EV sector as it continues to evolve and expand.

Ola Electric - Founders and Team

Bhavish Aggarwal is the Co-founder and CEO of Ola Electric.

Bhavish Aggarwal, born on August 28, 1985, is a prominent Indian entrepreneur known for his remarkable contributions to the tech and mobility sectors. Aggarwal hails from Ludhiana, Punjab, where he was born and raised. He completed his bachelor's degree in computer engineering from the Indian Institute of Technology, Bombay, in 2008. Early in his career, he worked with Microsoft Research India as a research intern, later becoming an assistant researcher. However, it wasn’t long before he ventured into entrepreneurship. During his time at Microsoft, he filed two patents and published three papers in international journals, demonstrating his strong technical expertise.

In 2010, he co-founded his first major company, Ola Consumers (ANI Technologies Pvt.), which quickly emerged as a strong competitor to Uber in India. What started as a ride-hailing app soon expanded into other sectors, including online payments and food delivery, establishing Ola as a versatile and powerful player in India’s tech ecosystem.

Aggarwal also founded Ola Electric, a venture dedicated to revolutionizing the electric vehicle industry in India. Most recently, he launched OlaKrutrim, a groundbreaking artificial intelligence (AI) company, which became India’s first AI unicorn in 2024, reaching a valuation of $1 billion.

Recognized globally for his influence, Aggarwal was named in Time magazine's list of the 100 Most Influential People in 2018. With a net worth of $2.3 billion, he stands as one of the youngest self-made billionaires in the world.

Bhavish Aggarwal's journey from tech researcher to founder of multiple successful ventures showcases his vision for the future of technology and mobility, both in India and on the global stage.

Bhavish Aggarwal: Education | Personal Life | Success Story

Explore the inspiring journey of Bhavish Aggarwal, the founder and CEO of Ola, as he navigates the dynamic world of technology and transportation. Discover about Bhavish Aggarwal’s education, parents, age, and more.

StartupTalkyTejas Mundhada

Ola Electric - Startup Story

Ola initially started as Olatrip.com, a small website venture offering weekend trip packages. Founded by two IIT Mumbai graduates, Bhavish Aggarwal, and Ankit Bhati, it began as a startup aimed at selling online tour packages. After working at Microsoft for nearly two years, Bhavish shifted his focus to entrepreneurship. However, a frustrating experience with a car rental service led Aggarwal to encounter a significant gap in the transportation industry, which drove him to innovate and disrupt the market. Henceforth, the duo began to rethink the car rental system entirely, sparking the creation of Ola Consumers (formerly Ola Cabs). What began as a solution to improve car rentals soon transformed into a ride-hailing giant, now simply known as Ola.

As the company grew, it expanded beyond ride-hailing, eventually venturing into the electric vehicle space.

In a press conference in Mumbai in late July, Bhavish reflected on the EV journey, saying, "Three years ago, when we launched our product, I believe that’s when the EV story began."

These words encapsulate the meteoric rise of Ola Electric, which quickly became a key player in India's electric vehicle revolution. At a time when India's green infrastructure was still developing, Bhavish’s ambitious vision to create the world’s leading "urban mobility EV company" drove Ola Electric’s rapid growth. His bold vision, coupled with Ola Electric’s innovative strides, has placed both the company and Aggarwal at the forefront of India's EV transformation, powering the country’s shift toward a sustainable, electric-powered future.

Ola Electric - Mission and Vision

Ola Electric’s mission is to significantly reduce emissions and lower fuel dependency by transitioning Ola's cabs and other vehicles to electric, promoting mass electric mobility for a cleaner and greener future.

While Ola Electric envisions:

• Bringing together brilliant young minds to drive innovation
• Shaping the future of electric vehicles on a global scale
• Excelling in technology and engineering
• Creating industry-leading products that set new benchmarks for electric mobility

Ola Electric - Name, Tagline and Logo

Ola's tagline "All-electric Future. From India. For the world.", perfectly captures the company's mission of leading the electric vehicle revolution from India with a global perspective. 

The word "Ola", symbolizes the ease and friendliness that the company aims to bring to its customers. Ola strives to make hailing a cab and using their services effortless and user-friendly. This reflects their commitment to providing seamless, customer-centric experiences while driving the future of electric mobility.

Ola Electric - Business Model

Ola Electric's business model operates on three core platforms:

1. R&D and Technology: Ola Electric takes charge of designing and developing its own electric vehicle (EV) technologies and components. This includes key areas like software, electronics, motors, batteries, and advanced manufacturing techniques. Their focus on in-house innovation allows them to maintain control over the quality and functionality of their products.
2. Manufacturing and Supply Chain: Ola Electric boasts a flexible assembly line, supported by a shared supply chain and a vertically integrated manufacturing ecosystem. This integration streamlines their production process, ensuring efficiency and scalability, from the components to the final product.
3. D2C Omni-Channel Distribution: Ola Electric embraces a direct-to-consumer (D2C) approach for selling and servicing its EVs. This includes an online shopping platform, a robust charging network, and company-owned sales and service centers. By handling distribution and services directly, Ola Electric ensures a seamless and consistent customer experience.

Business Model of Ola | How does Ola Cabs makes money

Ola is one of the leading can aggregator in India founded by Bhavish Aggarwal. Lets look at its business model to understand reason behind it success.

StartupTalkyPratyusha Srivastava

Ola Electric - Revenue Model

Ola Electric generates revenue from the following streams:

• Selling Scooters: The main revenue driver for Ola Electric is the sale of its electric scooters, including popular models like the S1 Pro, S1 Airand S1 X+.
• Selling Accessories: Ola Electric also generates income through the sale of accessories such as spare parts, chargers, and other related products that complement its EV offerings.
• Services: Ola Electric provides a range of services, including maintenance, after-sales support, and other customer services to ensure the long-term satisfaction of its users.

Ola Electric - Challenges Faced

Ola Electric, the electric vehicle (EV) company headquartered in Bengaluru, has experienced several operational challenges that have impacted its business. Here’s a closer look at these issues:

Ola Electric Layoff

On November 21, 2024, a source revealed that Ola Electric plans to lay off about 500 employees as part of a restructuring effort to improve the company's profits.

This comes a few months after its sister company, Ola Consumer (formerly Ola Cabs), also underwent restructuring in April, affecting 10% of its staff. During that time, CEO Hemant Bakshi stepped down after less than a year, and CFO Karthik Gupta also left, impacting around 200 employees.

Service Issues

• Enhancing Customer Trust Amid Increased Complaints: With rising complaints about software glitches and hardware issues, Ola Electric faces the challenge of restoring customer confidence. The Hyperservice campaign and quick-service guarantee are aimed at improving service reliability and customer experience. Aggarwal’s commitment to doubling service centers to 1,000 by December presents a logistical challenge. Expanding infrastructure while ensuring consistent service quality will require efficient resource management, staffing, and training. Introducing a one-day quick-service guarantee, with backup Ola S1 scooters for delays, requires robust operations management. Ola Electric must ensure availability and streamlined service processes to meet this promise consistently.
• Minimizing Impact of Service Challenges on Sales: The decline in sales, linked to unresolved service issues, places pressure on Ola Electric to stabilize sales by improving its service reputation. The effectiveness of the Hyperservice campaign and prompt delivery of promises will be critical in reversing this trend. Offering cab coupons through Ola Care+ adds value for customers, but ensuring adequate customer retention and satisfaction may require further enhancements to Ola Care+ plans and personalized support.

Market Share Decline

Ola Electric's market dominance has seen a downturn, with its market share dropping from 40.4% to 32.4% in recent months. This dip indicates increased competition and possibly waning customer confidence in the company's products or services.

Market Competition

Ola Electric, once dominating India’s electric scooter market, saw a significant drop in sales in September, marking its lowest monthly sales figure at 23,965 units. This decline led to a market share dip of 27%, a sharp fall from its commanding 50% share in April. As Ola Electric’s sales slumped, competitors like TVS Motor and Bajaj Auto capitalized, gaining ground with the introduction of newer models and stronger service networks.

This shift suggests increasing competition and growing consumer expectations for product quality and after-sales service, areas where Ola may need to focus to regain its footing in the market. The decline also raises questions about its long-term dominance, as rivals continue to innovate and expand.

Technological Advancements

Ola Electric, once a fierce competitor to Uber in the ridesharing market, has now shifted its strategy towards tackling a new giant—Tesla. As Tesla eyes the Indian EV market, Ola Electric is aggressively aiming to undercut Tesla by offering more affordable electric vehicles.

Their contribution to India’s mobility landscape is primarily through two-wheeled mopeds, which have made Ola Electric the country's largest manufacturer of electric scooters. Expanding beyond scooters, the company has intensified its focus on electrification. It is actively developing its lithium-ion battery technology and building Asia’s largest battery R&D facility. This cutting-edge center will drive Ola's ambitions to lead the EV revolution in India by advancing battery tech and maintaining a competitive edge in the global market.

By investing heavily in these areas, Ola Electric is positioning itself to dominate India’s EV market and compete internationally, with innovations that could reshape the future of electric mobility.

Ola Electric - Funding and Investors

Ola Electric has raised a total of $1.7B in funding over 15 rounds. Ola Electric has been making headlines with a series of substantial investments:

Ola Electric - Investments

Ola Electric has invested in StoreDot, details of which are as below:

Ola Electric - Mergers and Acquisitions

Ola Electric made a single acquisition in 2020.

Ola Electric - Growth

Ola Electric has experienced significant growth in revenue, deliveries, and market share in the Indian electric vehicle market, specifically in two-wheeled EVs:

• Revenue Growth: In Q1 2024, Ola Electric's revenue rose by 32.3%, reaching INR 1,644 crore, up from INR 1,243 crore in Q1 2023.
• Deliveries: The company delivered over 1.2 lakh electric scooters in Q1 2024, a substantial increase from 70,575 units in the same period the previous year.
• Market Share: As of September 2023, Ola Electric captured approximately 47% of India's two-wheeler EV market, marking it as a dominant player.
• IPO Success: Ola Electric's listing on the National Stock Exchange (NSE) on August 9, 2024, resulted in a stock surge to ₹126.21 by August 23, a 66% increase.

Ola Electric's revenue grew by 90% from FY23 to FY24, going from INR 2631 crore to INR 5010 crore. However, its total expenses also went up by about 62%, from INR 3883 crore to INR 6277 crore. The cost of materials increased by 75%, and employee expenses rose slightly by 3%. Despite the revenue growth, the company’s losses grew by 8%, from INR 1472 crore in FY23 to INR 1584 crore in FY24.

Looking ahead, Ola Electric anticipates that electric two-wheeler adoption will reach 41-56% by FY28. Its vertically integrated model spans R&D, technology development, manufacturing, sales, service, and charging infrastructure, with plans to incorporate its cell technology by Q1 FY26.

While Ola Electric achieved strong operational growth, challenges persist. Its net loss widened 8% in 2024. Nevertheless, Goldman Sachs forecasts that Ola Electric's revenue will expand at 2.5 times the rate of its peers, with volume growth expected to outpace competitors fivefold over the next three years, setting the stage for potential EBITDA breakeven soon.

Ola Electric - Advertisements and Social Media Campaigns

Ola’s marketing strategy has strategically leveraged its brand recognition and environmental messaging to boost its presence in the electric vehicle market. Here’s an overview of Ola’s promotional approach and targeted advertising efforts:

1. Eco-Friendly Brand Messaging: Ola Electric has centered its marketing around the eco-conscious benefits of electric scooters, emphasizing reduced emissions and cost-effectiveness. This approach appeals to the growing environmental awareness among consumers, especially younger audiences who value sustainable choices.
2. Targeted Advertising Campaigns: To reach potential customers, Ola Electric has launched focused ad campaigns that highlight the financial and ecological advantages of EVs. By showcasing lower operating costs, emission reductions, and ease of use, the campaigns effectively communicate the benefits of transitioning to electric scooters.
3. Influencer and Celebrity Partnerships: Collaborations with influencers and celebrities have helped Ola amplify its brand message and reach a wider audience. These endorsements, targeted at a youth-centric market, enhance the brand’s appeal and establish a relatable connection with potential customers.
4. Youth-Centric Advertising Campaigns: Ola’s 2017 campaign, which targeted young, ethically-minded consumers, emphasized the importance of tackling urban challenges like traffic congestion and pollution. This campaign resonated with socially aware young people who are interested in creating positive change in their communities.
5. World Environment Day Campaign #FarakPadtaHai: Launched on June 5, 2017, this campaign encouraged nationwide awareness of ride-sharing as a means of reducing pollution and traffic. Through a TV commercial and other offline activities, Ola fostered a sense of responsibility towards the environment, further solidifying its eco-friendly brand positioning.
6. The Shared Pass Initiative: Ola introduced a shared pass at an affordable rate of ₹1 to promote shared travel, overcoming initial reluctance among users about ride-sharing with strangers. This campaign successfully increased shared ridership, reflecting Ola’s ability to engage users and drive the adoption of shared transportation solutions.

Ola Success Story - Funding, Founders, Team, Revenue and More

Formerly known as Ola Cabs, Ola was founded in December 2010 by Bhavish Aggarwal and Ankit Bhatia. Here is the story of Ola, and how it all started for them!

StartupTalkyShubham Kumar

Ola Electric - Awards and Achievements

Ola Electric’s achievements and recognition reflect its innovation and leadership in the electric vehicle industry.

1. IHS Markit Innovation Award (CES): Ola Electric received this award at CES for its groundbreaking design, performance, and smart features, setting new standards for electric scooters in India and globally.
2. German Design Award: Ola Electric was recognized for the sleek and innovative design of its scooters, reinforcing its appeal in both aesthetics and functionality.
3. Advanced Chemistry Cell (ACC) Battery Storage Capacity Allocation: Awarded in March 2022 under India’s Production Linked Incentive (PLI) scheme, Ola Electric received a 20GWh capacity allocation for ACC battery storage, entitling it to five years of incentives to advance EV battery development.
4. Electric Scooter of the Year - Car&Bike Awards 2023: The Ola S1 scooter won this category, prevailing over competitors like the TVS iQube S, Vida V1 Pro, and Okinawa Okhi-90 for its excellence in performance and design.
5. PLI-Automotive Certificate from ICAT: In March 2024, the International Centre for Automotive Technology (ICAT) awarded Ola Electric the PLI-Automotive Certificate, recognizing its pioneering contributions to electric mobility under the PLI scheme.
6. WomenIN Leadership Award at UK-India Awards 2024: Ola Electric was honored at the UK-India Awards for its commitment to diversity and leadership in the EV sector, emphasizing its role in promoting inclusivity within the industry.

These awards highlight Ola Electric's dedication to innovation, design excellence, and sustainable mobility, positioning the company as a leader in the electric vehicle industry.

Ola Electric - Competitors

Ola Electric faces competition from several prominent players in India's rapidly growing electric vehicle (EV) sector, particularly in the two-wheeler segment:

• Ather Energy
• Hero Electric
• Bounce Infinity
• Ampere Vehicles
• Greaves Electric Mobility

Ola Electric - Future Plans

Ola Electric has positioned itself at the forefront of India’s electric vehicle (EV) transformation, with ambitions that extend beyond two-wheelers to broader electrification and energy independence. By leveraging new funding and strategic partnerships, Ola is scaling its operations and product lineup:

Recent Funding and Expansion

• October 2023 Funding: Ola Electric secured INR 3,200 crores (~USD 385 million) from investors like Temasek and project debt from the State Bank of India. These funds will drive expansion into new product lines and support the setup of India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
• Gigafactory and Lithium-Ion Cell Manufacturing: As the first Indian EV company selected for the government’s Advanced Chemistry Cell (ACC) Production-Linked Incentive (PLI) scheme, Ola is building a pioneering lithium-ion battery cell manufacturing unit, with an eventual target capacity of 100 GWh, significantly boosting India’s local EV supply chain.

Product Portfolio Expansion

• Scooter Range: Ola’s recent Gen-2 platform has allowed for an expanded lineup of electric scooters, including the S1 Pro, S1 Air, S1X+, S1X (3kWh)and S1X (2kWh), covering a broad range of price points from INR 89,999 to INR 1,47,499. This lineup enhances accessibility for various consumer segments.
• Upcoming Electric Motorcycles: Ola has announced four models—Diamondhead, Adventure, Roadster, and Cruiser—designed to meet different consumer preferences and expected to launch by the end of 2024. These motorcycles reflect Ola’s commitment to style and advanced engineering in the EV segment.

Vision for India’s EV Ecosystem

Ola Electric aims to lead India toward energy self-sufficiency by strengthening domestic manufacturing of critical EV components and creating a robust battery supply chain. Through its diversified portfolio and pioneering facilities, Ola Electric is setting a high standard for innovation and scalability in India’s EV market, positioning the country as a central hub for future-ready technology and sustainable energy solutions.

FAQs

Who is the founder of Ola Electric?

Bhavish Aggarwal is the co-founder and CEO of Ola Electric.

What does Ola Electric do?

Ola Electric makes electric scooters and works on other electric vehicle technologies to reduce pollution and promote clean energy.

When was Ola Electric founded?

Headquartered in Bengaluru, Ola Electric was founded in 2017.

Who are the competitors of Ola Electric?

The main competitors of Ola Electric include Ather Energy, Hero Electric, Bounce Infinity, Ampere Vehicles, Greaves Electric Mobility, and more.