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4d ago

Ola Electric Raises Rs 1,700 Crore as Regulatory and Market Challenges Mount

The EV maker secures funding through non-convertible debentures while grappling with showroom closures, falling market share, and profitability concerns.

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Overview

  • Ola Electric’s board approved a Rs 1,700 crore fundraise through non-convertible debentures to address financial pressures and support growth initiatives.
  • The company began deliveries of its new electric motorcycle, Roadster X, on Friday, aiming to regain market share in India’s competitive EV sector.
  • Regulatory action in Maharashtra led to the closure of 107 showrooms due to missing trade certificates, compounding operational challenges.
  • Ola Electric has implemented cost-cutting measures, including laying off 1,000 employees, closing regional warehouses, and streamlining its sales network.
  • The company’s stock has fallen 39% year-to-date, trading at Rs 51.50 per share, following an ICRA credit rating downgrade citing prolonged cash burn.