Ola Electric, led by Bhavish Aggarwal, is facing mounting troubles, including financial strain, regulatory challenges, and consumer complaints. Two key service providers—Rosmerta Digital Services and Rosmerta Safety Systems—have filed insolvency petitions against the EV maker
Troubles have been mounting for Bhavish Aggarwal-led Ola Electric over the past few months. From regulatory hurdles to consumer complaints and rising losses, the EV maker is now facing insolvency petitions from two of its key vehicle registration service providers in India over unpaid dues, according to a Bloomberg report.
Rosmerta Digital Services (a vehicle registration service provider), and Rosmerta Safety Systems (high-security registration plates supplier) have separately began insolvency proceedings against the privately held Ola Electric Technologies over outstanding invoices that remain unpaid, the report said.
It added that Rosmerta Digital Services claims outstanding dues of over Rs 22 crore, while its sister company --- Rosmerta Safety Systems --- has sought around Rs 2.5 crore in payments. Ola Electric Technologies is a wholly-owned subsidiary of Ola Electric Mobility.
“We wish to inform you that a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") by M/s. Rosmerta Digital Services Limited, an Operational Creditor of Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric Mobility Limited ("the Company"),” the exchange filing read.
“The petition has been submitted before the National Company Law Tribunal – Bengaluru Bench ("NCLT, Bengaluru"), alleging to default in payment towards the services rendered by the Operational Creditor and seeking initiation of the Corporate Insolvency Resolution Process ("CIRP") against the Ola Electric Technologies Private Limited,” it added.
The electric scooters maker informed the stock exchanges about insolvency petitions filed against its subsidiary in the National Company Law Tribunal in Bengaluru on Saturday. To this, the company stated that it strongly disputes the claims and is seeking legal advice to challenge the allegations.
The shares of EV maker giant have declined over 41% year-to-date. The stock price even dropped around 55% in the past six months, while the three-month performance also looks weak with a 46% decline. Since its IPO debut in August 2024, its shares have plunged more than 65% from their peak. Today, Ola Electric’s share price reached Rs 47 a piece on the bourses.
Ola Electric reported a significant increase in its losses i.e., the EV company posted a net loss of Rs 564 crore for the third quarter of fiscal year 2025 as compared to Rs 376 crore in the year-ago period. And the company’s revenue from operations also witnessed a noticeable fall of 19% year-on-year to Rs 1,045 crore. In Q3FY24, Ola’s revenue stood at Rs 1,296 crore.
On a sequential basis, the company’s net loss widened from Rs 495 crore in Q2FY25, while revenue dropped from Rs 1,214 in the previous quarter. It also took some cost-cutting measures like huge discounts on scooters to reduce expenses.
Despite this, Ola’s expenses reduced to Rs 1,505 crore from Rs 1,593 crore in Q2 but the company’s financial strain persisted, with losses mounted further in third quarter. About a few months ago, Ola also received over 10,000 consumer complaints regarding the quality of its scooters.