OLA Electric, a leading Bangalore-based electric two-wheeler manufacturer, is reportedly working towards raising funds once again. According to sources, the company is in talks with bankers to raise an amount ranging from ₹1,000 to ₹1,200 crore. This sum is likely to be raised through private credit lines and will primarily be used to refinance existing bank loans.
This move by OLA Electric is observed at a time when its market share has declined and other competing companies have made a b comeback.
Decline in Market Share Causes Concern
OLA Electric has been facing pressure in the electric two-wheeler market for some time. Established and trusted brands like Ather, TVS, and Bajaj have re-established their position, slowing down OLA's growth trajectory.
OLA's new funding plan is seen as a response to this challenge. The company aims to improve its capital position to regain its foothold in the market.
Losses in March 2025 Quarter Shock
The company's financial health has also been a subject of discussion recently. In the quarter ending March 2025, OLA Electric's losses reached ₹870 crore, a significant increase from the previous year's losses.
This loss has raised concerns among investors and analysts. The new funding initiative undertaken by the company comes against this backdrop.
Attempt to Raise Capital Again This Year
This is the second major funding attempt by OLA Electric this year. In January 2025, the company approved a proposal to raise ₹1,700 crore, which was to involve the use of non-convertible debentures (NCDs) and other debt-based securities.
Now, within a few months, the company is again moving towards raising capital. However, this time, the purpose is said to be refinancing its existing debt.
Company's Denial, But Discussion Continues
A spokesperson for OLA Electric has denied the reports circulating in the media. The company claims that the reports are factually incorrect and misleading. However, the information coming from industry sources and bankers suggests otherwise.
It is reported that the company has also sought suggestions from some major financial advisors regarding various funding options.
Bhavish Aggarwal's Reliance on Private Credit
OLA Electric's founder and MD, Bhavish Aggarwal, has reportedly decided to opt for private credit lines to raise funds. Previously, the company had also considered options like QIP (Qualified Institutional Placement), but private debt is being prioritized.
Sources say that the company's financial advisors have been instructed to prepare options that can raise funds quickly and on better terms.
Weak Share Performance
OLA Electric's share has been experiencing a decline for some time. On July 11, 2025, the company's share reached ₹39.8 on the BSE. The falling share price has caused a stir in the market.
Investors are now focusing on whether raising funds again will improve the share's situation or further increase the pressure.
Strong Competition
OLA Electric is currently facing increasing competition in the market and internal financial challenges. Products like TVS's iQube, Ather's 450X, and Bajaj's Chetak are again becoming popular in the market.
OLA Electric has expansion plans, but it constantly feels the need for funding. This is why it is repeatedly looking for new options.
Hopes Remain After IPO
OLA Electric was listed on the stock market in August 2024. There was considerable enthusiasm in the market for the company at that time. However, the way losses increased and the share price declined after the listing has affected investor sentiment.
Now that the company is moving towards funding again, the market is watching how much this step can improve the company's situation.
