Ola Electric Plans Rs. 877.6 Crore Fund Raise to Boost EV Business

Ola Electric Technologies will raise Rs. 877.6 Crore through preference shares issued to Ola Cell Technologies. The move will support EV platform development, local battery production, and reduce import reliance. In addition to that, the step will help Ola Electric strengthen its ecosystem and build stronger financial flexibility for future growth.

Ola Electric Technologies to Raise Fresh Capital

Ola Electric Technologies (OET), a fully owned unit of Ola Electric, will raise Rs. 877.6 Crore through preference shares. The company confirmed that 87.76 Crore preference shares will be issued to its fellow arm Ola Cell Technologies (OCT). Each share will carry a face value of Rs. 10 with a 0.001 per cent non-cumulative dividend. The issue will be completed through private placement in one or more stages, as stated in a filing.

Focus areas of OET and OCT

OET works as the company’s main hub for technology and vehicle platform development, including battery solutions. On the other hand, OCT focuses on developing cells within India and manufacturing them on a larger scale. This step helps Ola Electric cut reliance on imported cells and manage risks caused by global supply issues. Moreover, the combined effort supports the company’s target of building a stronger supply chain for its future expansion.

IPO funds and earlier allocations

In August 2024, Ola Electric raised Rs. 5,500 Crore through its initial public offering, which marked a major milestone. From this, Rs. 1,228 Crore was allocated to Ola Cell Technologies to expand its capacity from 5 GWh to 6.4 GWh. Later, the company restructured the use of IPO proceeds. Around Rs. 1,049 Crore went for research and development, ₹901 crore for organic growth, Rs. 395 Crore for debt repayment, and Rs. 248 Crore for corporate needs.

Importance of the fresh fund raise

The new fund raise is expected to strengthen the company’s financial flexibility and support operations across its key arms. This move also comes at a time when Ola Electric is working to advance its in-house cell production. Hence, the focus remains on supporting long-term electric vehicle growth and reducing dependence on external suppliers for core technology.

Updates on in-house battery cells

During its June quarter results, Ola Electric said it had started producing its own 4680 lithium-ion battery cells. These cells will first be used in its vehicles during the upcoming Navratri season. The company aims to fully use its 1.4 GWh plant capacity by FY26, while plans are set to expand to 5 GWh in FY27. The 5 GWh unit, costing Rs. 2,800 Crore, is backed by a loan consortium led by the State Bank of India.

Market performance and incentives

However, Ola Electric’s share in the electric two-wheeler market saw a dip in recent months. Sales dropped from 19,020 units in August to 11,780 units in September, lowering its share from 18.7 per cent to 13.2 per cent. In addition to that, the company has claimed nearly Rs. 400 Crore under the government’s PLI scheme. Its Gen 3 scooter range has also secured compliance approval, making it eligible for 13-18 per cent incentives on sales until 2028.
Have a look at the Bajaj Two-Wheeler Sales Report For September 2025.