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Listed EV manufacturer Ola Electric has received the approval from its board to raise up to INR 1,500 Cr as the loss-making company looks to strengthen its cash reserves.
In an exchange filing, the company said it received the shareholders’ nod to raise the funds through issuance of securities via further public offer, rights issue, QIP, private placement and/ or any other permitted modes.
The company’s board of directors approved the fundraise last month. Ola Electric plans to deploy the freshly raised funds to ramp up the cell business, expand battery energy storage systems, strengthen post sales production, and new product development.
This comes at a time when Ola Electric is shifting its focus towards being an energy company from just an EV company amid a sharp decline in market share in the two-wheeler EV market and high losses.
In its Q2 FY26 shareholders’ letter, the company said it has commissioned cell capacity of 2.5 GWh and expects to reach 5.9 GWh by March 2026 and 20 GWh by FY27.
The company plans to use the additional cell capacity for its battery energy storage system (BESS) offering, a segment in which it forayed recently. Ola Electric launched Ola Shakti in October to provide residential BESS solutions.
The company is aiming to start deliveries from January 2026 and expects Ola Shakti to generate a revenue of INR 100 Cr by the last quarter of the ongoing fiscal year and INR 1,000- 2,000 Cr annual revenue in FY27.
In the Q2 shareholders’ letter, it also announced its intention to enter the commercial BESS segment. It said it would enter the containerised energy-storage systems segment for commercial, industrial, and utility-scale use, ranging from 100 kWh to 5 MWh systems.
Meanwhile, the company said it also began integrating its in-house built 4680 Bharat cells in its EVs and expects all its vehicles to move to the in-house produced cells over a period of 6-9 months.
While its EV sales declined, Ola Electric said its automotive segment turned EBITDA positive in Q2, posting an EBITDA of INR 2 Cr as against an EBITDA loss of INR 162 Cr a year ago. Going ahead, the company said it would focus on profitability in the segment instead of market share.
Overall, Ola Electric managed to trim its consolidated net loss by more than 15% to INR 418 Cr in Q2 from INR 495 Cr in the same quarter last year. However, revenue also slumped 43% YoY to INR 690 Cr during the quarter from INR 1,214 Cr in the second quarter of FY25.
While the company managed to slow the pace of its cash burn in Q2, it still saw a net decrease of INR 294 Cr in its cash reserves in the September quarter.
Amid all these, the company’s shares have been in free fall. The stock has declined almost 52% year to date. At 12:40 IST, the stock was trading almost flat at INR 41.40 on the BSE.
The post Ola Electric Gets Shareholders’ Nod For INR 1,500 Cr Fundraise appeared first on Inc42 Media.
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