Bhavish Aggarwal Pays ₹20cr Collateral to Prop Up Pledged Ola Electric Shares’ Valuation

Bhavish Aggarwal, founder and CEO of Ola Electric Mobility, paid approximately ₹ 20 crore ($2.3 million) in cash to top up collateral for borrowings against shares after the stock declined due to weak sales, Bloomberg reported.

Aggarwal raised ₹250 crore for his generative AI startup, Krutrim Data Centre, by pledging Ola Electric equity. He voluntarily added the extra funds since March as the shares fell below ₹50 each, according to individuals who requested anonymity because the details are private. No margin calls were triggered, and the value of the stock collateral exceeds twice the borrowed amount, they noted.

According to exchange records, Bhavish Aggarwal has pledged or encumbered approximately 8 % of his 30 % stake in Ola Electric. Avendus Group, InCred Alternative Investments Pvt. Ltd. and Modulus Alternatives Investment Managers provided loans in exchange for bonds issued by Krutrim, carrying coupon rates ranging from 14.9 % to 15.9 % and secured by Ola Electric shares, according to Bloomberg and an anonymous source.

Investors are closely monitoring SoftBank Group Corp.-backed Ola Electric, whose shares have declined by about 35 % since listing at ₹ 76 in August. Hyundai Motor Co. and Kia Corp. recently reduced their stakes in the company following the Indian e-scooter manufacturer’s report of quarterly losses that more than doubled, attributed to regulatory and governance challenges.

Ola Troubles

Ola Electric reported a significant decline in revenue and a twofold increase in losses during the fourth quarter of fiscal year 2025. Its operating revenue fell by approximately 61 % year-on-year to ₹ 611 crore in the January–March quarter, down from ₹ 1,598 crore in the same period the previous year.

The electric-vehicle maker’s net loss for the quarter rose to ₹ 870 crore, compared to ₹ 416 crore in Q4 FY24. The company’s EBITDA margin deteriorated sharply to −101.4 % in Q4 FY25, down from −16.4 % in the same quarter last year. However, Ola expects its consolidated EBITDA margin to improve significantly to −25 % in Q1 FY26.

Vehicle deliveries nearly halved, dropping to 51,375 units in Q4 FY25 from 115,386 units in Q4 FY24. The company anticipates Ola scooter deliveries to reach 65,000 units by the end of the first quarter of FY26.

Adding to the challenges, recent evaluations by rating agency ICRA and key investor Vanguard have raised concerns. Vanguard reportedly reduced Ola’s valuation to $1.25 billion, an 80 % decline from its peak of $7.3 billion in 2021. Additionally, ICRA downgraded Ola Electric’s debt rating from ‘A’ to ‘BBB+’ with a negative outlook, signalling heightened financial risk.

Ola Electric also lost its market leadership in the electric two-wheeler segment in April 2025 to TVS Motor, according to data from the government-run Vahan portal. Ola registered 19,709 vehicles last month, a 42 % year-on-year decline, capturing a 21.46 % market share.