Ola Electric is looking to raise significant funds to expand its battery manufacturing and energy storage capabilities, facing a sharp decline in revenue.
Ola Electric is embarking on a significant fundraising initiative, aiming to raise up to ₹2,000 crore by selling a stake in its battery subsidiary, Ola Cell Technologies. This move comes as the electric vehicle (EV) maker seeks to enhance its domestic battery manufacturing and energy storage capabilities, particularly in light of recent financial challenges.
The company operates a lithium-ion cell manufacturing facility in Tamil Nadu, which currently has an operational capacity of about 1.5 GWh. Ola Electric plans to scale this capacity to 6 GWh by the end of the current financial year, indicating a strong commitment to expanding its production capabilities.
The fundraising process is being managed by investment banks Avendus Capital and Motilal Oswal Financial Services, who are expected to play a crucial role in facilitating this financial maneuver.
Additionally, the company reported a negative cash flow from operations amounting to ₹866 crore during the nine-month period ending December 31, 2025. This financial strain underscores the urgency of the proposed fundraising and the need for a strategic turnaround.
Ola Electric has also been innovating in battery technology, having developed dry electrode manufacturing technology for lithium-ion batteries. The company boasts a portfolio of nearly 400 patents at its Ola Battery Innovation Centre, showcasing its commitment to research and development in this critical sector.
Furthermore, Ola Electric has introduced residential battery energy storage systems and is planning to expand into commercial energy storage solutions, indicating a broader vision beyond just electric vehicles.
The gigafactory project, which was built with an upfront investment of about ₹3,500 crore, represents a significant investment in the future of battery manufacturing in India.
Despite the current financial hurdles, Ola Electric’s shares ended a recent trading session 5.28% higher at ₹24.32, reflecting some investor confidence in the company’s long-term potential.
Observers note that the success of this fundraising initiative will be crucial for Ola Electric as it navigates its current challenges and aims to solidify its position in the rapidly evolving EV market.
