The board of Ola Electric, a significant player in the electric vehicle (EV) market, today authorized a plan to raise up to INR 1,500 Cr through a combination of convertible instruments and equity shares.

At the October 25, 2025, board meeting, the fundraising strategy was approved.  According to the corporation, the offering might be handled in a number of ways, including a private placement, rights issue, qualified institutional placement (QIP), or public offer.

In a filing with the exchanges, the company stated, “We would like to notify you that the board has reviewed and approved a proposal for raising funds, among other things, by issuing such (a) number of fully paid-up equity shares and/or convertible securities… for an aggregate consideration of up to INR 1,500 Cr….”

Shareholder approval and any required regulatory clearances will be prerequisites for the planned fundraising.  The date and price of the securities’ issuance were not disclosed by the corporation.

The EV major told the exchanges a few days prior that its board will meet to discuss a fund-raising request.  The company is raising new funds, which is intriguing, considering that it only raised INR 5,500 Cr through a new issuance during its August IPO last year.

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The company’s assertions in its Q1 FY26 shareholders report that it was “well funded for this year and the next” because of its INR 3,197 Cr cash balance at the end of June 2025 also conflict with the most recent fundraising.

The move coincides with early investors SoftBank, Z47 (formerly Matrix Partners India), and Tiger Global cutting back on their investments in the EV manufacturer since the start of this year.

Increasing rivalry from established manufacturers like Bajaj Auto and TVS Motor, who have surpassed the Bhavish Aggarwal-led company in EV registrations over the past several months, hasn’t helped either.

Additionally, the EV manufacturer is apparently under investigation after a worker allegedly accused founder Aggarwal and a senior executive of harassment in a note before taking their own life.  The business has refuted the claims.

As if that weren’t enough, the company’s statutory auditors also noted a “material weakness” in the physical scooter verification at one of its wholly-owned subsidiaries’ stores and state distribution centers in their FY25 report.  The business then explained that the discovery pertained to a single instance of inventory verification at Ola Electric Technologies, a subsidiary.

However, the EV manufacturer’s poor financial results seem to be the main problem.  In the first quarter (Q1) of the fiscal year 2025–2026 (FY26), Ola Electric’s consolidated net loss increased by 23.3% to INR 428 Cr, compared to INR 347 Cr in the same period last year.  Additionally, operating revenue decreased by almost half to INR 828 Cr in the reviewed quarter from INR 1,644 Cr in Q1 FY25.

Ola Electric’s stock has consequently been declining.  In comparison to its listing price of INR 76, the stock has dropped more than 38% year-to-date (YTD) and is currently trading 30% lower on the BSE.

On the BSE, the company’s shares ended Friday’s trading session 1.53% lower at INR 52.85.