The Board of Directors of Ola Electric Mobility approved a plan on Saturday to raise capital of up to 150 billion rupees through the issuance of equity and convertible securities, subject to shareholder and regulatory approval. This move aims to strengthen the financial stability of the electric two-wheeler manufacturer amid a competitive market and support efforts to improve operational performance.
Parallel to the fundraising process, the company announced changes in senior management and leadership. Chief Operating Officer (COO) Hyun Shik Park resigned effective September 5 due to personal reasons.
Furthermore, the extension of terms for Shraddha Sharma, founder and CEO of YourStory, and Manoj Kumar Kohli, former Country Head of SoftBank India, to a second five-year term as independent directors was approved, which also requires shareholder approval.
The recent fundraising announcement followed just a few months after Ola Electric raised 78 billion rupees through a Qualified Institutional Placement (QIP), wherein new shares were distributed among institutional investors. These funds were intended to bolster liquidity, support capital expenditures, debt repayment, and cover working capital needs.
The company's board also approved an increase in Ola Electric's authorized capital from approximately 831.8 billion rupees to 872.2 billion rupees. The increase in authorized capital determines the maximum number of shares the company is permitted to issue and creates additional room for planned fundraising, while also requiring shareholder approval.
The need for additional financial flexibility becomes apparent when reviewing Ola Electric's recent results. In the quarter ending June, operating revenue stood at 45.5 billion rupees, a 45% decrease compared to the previous year, and consolidated net loss reached 33.6 billion rupees. Nevertheless, deliveries reached 39,192 units, nearly double that of the previous quarter, and the company reported a gross margin of 30.5%, although it remained operationally unprofitable.
The competitive landscape has also undergone significant changes. TVS Motor reported sales of 59,453 electric two-wheelers in August, a 137% increase compared to the same period last year. The company's iQube model surpassed one million cumulative customers, highlighting the scale achieved by established two-wheeler manufacturers in the electric segment.
Bajaj Auto also expanded its Chetak lineup by including the C25 model, aimed at a more affordable price segment. According to the fiscal year 2026 annual report, domestic sales of Chetak reached 302,674 units, a 16% increase over the previous year, with the brand boasting over 500 service centers and more than 4,000 touchpoints.
Government policy continues to play an important supportive role for the sector: the central government amended the PM E-DRIVE scheme in August, extending incentives for electric two-wheelers until March 2028. This scheme provides an incentive of 2,500 rupees per kWh, capped at 5,000 rupees per vehicle for eligible models, depending on their price and other conditions. The government allocated 276.7 billion rupees to the e-2W component.