Bhavish Aggarwal-Led Ola Electric Eyes New Fundraising Round After IPO

Bhavish Aggarwal-led Ola Electric may raise fresh funds amid mounting troubles and declining stock price along with market cap. The board will convene a meeting on May 22 to evaluate the proposal for raising funds through the issuance of non-convertible debentures (NCDs) or other financial instruments, the EV maker said in an exchange filing.

The fundraise round can take place in one or more tranches. Other details like fund size, round, and the names of the investors have not been revealed yet. Notably, this would be the first capital raise by Ola Electric since the company made it IPO debut last year.

“We wish to inform you that the meeting of the Board of Directors of Ola Electric Mobility Limited (“the Company”) is scheduled to be held on Thursday, May 22, 2025, inter alia, to consider and approve the proposal for raising funds, by way of issuance of Non-Convertible Debentures (NCDs) or any other eligible securities, in one or more tranches, on a private placement basis or such other methods, as may be permitted under applicable laws,” the filing read.

As of 11:11 am, Ola Electric shares were trading at Rs 52.01 on the BSE, marking a 1.05% decline from the previous day's close. Over the past six months, the stock has plunged more than 20% and now sits nearly 32% below its listing price of Rs 76.

Ola Pumps Money into Battery Biz

The fundraise report came after the board of Ola Electric approved an Rs 199 crore capital infusion into its battery manufacturing subsidiary, Ola Cell Technologies. It also announced its plan to acquire 19.9 crore compulsory convertible preference shares in its wholly-owned subsidiary at a price of Rs 10 each. In addition, it also approved the overdue payables conversion.

The start-up  has been under regulatory scrutiny from various agencies, including the consumer rights watchdog CCPA, which has ordered investigations into complaints regarding alleged "deficiencies" in the start‑up's electric two‑wheelers and services.

Prior to this, the start‑up received a letter from the Ministry of Heavy Industries (MHI) requesting an explanation for the alleged discrepancy. As part of the ongoing investigation, Maharashtra RTO officials inspected several Ola showrooms across the state, including one in Pune.

During these inspections, officials verified that vehicles were sold with valid trade certificates and proper paperwork. Due to non-compliance, 36 scooters were seized in Pune and Mumbai.