Ola Electric arm OET raises ₹250cr from sibling unit Ola Cell Technologies via preference shares
Follows earlier ₹878cr tranche, part of wider ₹1,500cr group funding plan
Funds to bolster manufacturing, operations and in-house 4680 cell rollout
Ola Electric Technologies (OET), the manufacturing and tech arm of Ola Electric Mobility, approved on Thursday a second tranche allotment that will raise ₹250 crore from fellow subsidiary Ola Cell Technologies (OCT).
The board approved issuing 25 crore preference shares (face value ₹10 each) on a preferential, private-placement basis, part of a wider intra-group funding strategy to shore up operations across the electric vehicle group.
OET said the new tranche follows an earlier allotment this month, when it raised ₹878 crore by issuing 87.76 crore preference shares to Ola Cell. The latest infusion is aimed at strengthening OET’s financial position and improving operational flexibility across the group’s manufacturing and battery businesses.
Ola Fundraise
The funding round comes against the backdrop of a broader capital-raising framework at the parent. On 26 October, Ola Electric’s board approved a plan to raise up to ₹1,500 crore through multiple channels, equity, convertible securities, rights issues, QIPs, private placements or other permitted means.
The company had earlier raised ₹5,500 crore in its August 2024 IPO, and has since reallocated those proceeds, retaining funds earmarked for R&D (₹1,049 crore), organic growth (₹901 crore), debt reduction (₹395 crore) and general corporate purposes (₹248 crore).
OET and OCT sit at opposite ends of Ola’s product stack. OET manages vehicle platforms, manufacturing and systems integration, while OCT is focused on indigenous cell research and scale manufacturing. The two units are central to Ola’s move from supplier-sourced batteries to in-house production of 4680-format lithium-ion cells, a transition the company says began in the June quarter and which it expects to roll out into vehicles from Navratri this year.
Ola’s Cell Vision
Ola has outlined an aggressive cell-capacity roadmap. Management expects to fully utilise 1.4 GWh of cell capacity by the end of FY26 and scale to 5 GWh in FY27.
The 5 GWh plant carries an estimated budget of ₹2,800 crore, which Ola says will be financed in part by a loan from a State Bank of India-led consortium. The company has also expanded into battery energy storage products with its first non-vehicle offering, Shakti, which will use the same 4680 cells.
Ola’s Slipping Market Share
The capital moves are taking place as Ola navigates a tougher market for electric two-wheelers. The company’s market share slipped in September to 13.2% (11,780 scooters sold) from 18.7% in August (19,020 scooters), highlighting intensifying competition and the challenge of restoring sales momentum even as it builds manufacturing self-sufficiency.
Company filings note that the newly issued tranche consists of non-cumulative, non-participating, 0.001% Series A optionally convertible redeemable preference shares (OCRPS). Ola Electric said the allotment was approved at an OET board meeting held on 29 October 2025.
