Ola Electric’s board will consider raising capital through a QIP, private placement, preferential issue or a combination of routes.
Ola’s market share fell from 36.7% in 2024 to 16.1% in 2025 and 6.9% in July, as rivals gained ground.
A revised government timeline gives Ola a five-year battery manufacturing PLI window through 2031, potentially unlocking incentives of up to ₹7,240 crore.
The board of Ola Electric Mobility will consider a proposal to raise fresh capital at its September 5 meeting, the electric two-wheeler maker said in a regulatory filing on Thursday.
The proposed fundraising comes just months after Ola Electric raised around ₹780 crore through a qualified institutional placement (QIP) in June, as the company continues to navigate declining sales and a sharp loss in market share.
1 August 2026
Get the latest issue of Outlook Business
Multiple Fundraising Routes On Table
Ola Electric said its board will evaluate various permissible options for the proposed capital raise, including a private placement, QIP, preferential issue or a combination of these routes.
The September 5 meeting will also cover matters related to the company’s annual report for the financial year ended March 31, 2026, and its upcoming annual general meeting.
Ola’s Market Share Takes A Hit
The fresh fundraising proposal comes as the Bhavish Aggarwal-led company faces increasing competition in India’s electric two-wheeler market.
Rivals including TVS Motor, Bajaj Auto, Ather Energy and Hero MotoCorp have moved ahead of Ola in monthly sales.
Advertisement
According to Vahan data, Ola Electric’s market share fell sharply from 36.7% in calendar year 2024 to 16.1% in 2025, before declining further to 6.9% in July.
The decline has also weighed on the company’s financial performance.
Ola Electric reported ₹455 crore in revenue from operations in the June quarter, down from ₹828 crore in the same period a year earlier. Vehicle registrations fell to 43,062 units from 54,676 units a year ago, based on Vahan data.
Auditor Flags ₹57 Crore Provision Reversal
Ola Electric’s June-quarter results also came under scrutiny after its auditor flagged the reversal of a ₹57 crore provision related to a penalty for missing investment milestones under the government’s battery production-linked incentive (PLI) scheme.
Advertisement
The auditor noted that the provision had been reversed even though the company had not received formal approval from the Ministry of Heavy Industries (MHI) for a waiver.
The reversal reduced Ola Electric’s expenses for the quarter and helped narrow its loss to ₹336 crore from ₹428 crore a year earlier.
Revised PLI Timeline Provides Fresh Opportunity
Soon after the results, Ola Electric announced that MHI had granted the company a revised timeline for battery-cell manufacturing under the PLI scheme, giving it additional time to meet the required investment milestones.
The revised timeline provides Ola Electric with a five-year PLI window through 2031 and could make the company eligible for up to ₹7,240 crore in cumulative incentives, according to the company.
The proposed fundraise will now be closely watched as Ola Electric seeks to strengthen its finances while attempting to revive sales, rebuild market share and scale up its battery manufacturing ambitions.
