Venture capital firm Z47 and hedge fund Tiger Global reduced their stakes in Ola Electric during the first quarter of FY26, according to exchange filings.

Ola Electric, an electric vehicle maker based in Bengaluru, saw Z47 sell about 0.81% of its stake and Tiger Global reduce its holding by 0.21%.

The filings suggest Z47 is expected to have made between 155 crore rupee (US$18.57 million) and 192.9 crore rupee (US$23.23 million) from the sale, while Tiger Global is estimated to have received between 39 crore rupee (US$4.70 million) and 48.7 crore rupee (US$5.87 million).

This news follows Hyundai’s complete exit from Ola Electric in June via open market transactions, with Hyundai selling shares worth 552 crore rupee (US$66.51 million), Kia also sold shares worth 137.3 crore rupee (US$16.54 million) but has not fully exited.

Ola Electric’s revenue from operations fell 50% to 828 crore rupee (US$99.76 million) in Q1 FY26, while net loss widened to 428 crore rupee (US$51.57 million) from 347 crore rupee (US$41.81 million) a year earlier.

The company’s share price has dropped 52% year-to-date, closing at 40.86 rupee (US$0.49), according to recent data.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Early investor exits accelerate during steep business declines

Z47 and Tiger Global’s stake reductions reflect a broader pattern where early investors cut losses during sustained company downturns.

Ola Electric’s financial performance has deteriorated sharply over the past year, with revenue halving to ₹828 crore in Q1 2025 and net losses widening to ₹428 crore 1.

The company sold only 107,038 e-scooters in the first half of 2025, representing a 53.2% decline from the previous year 2.

This performance decline helps explain why Z47 and Tiger Global, who first invested in 2019 when the company was valued at much lower levels, are now taking profits despite the company’s current struggles.

The timing of these exits coincides with Ola Electric’s share price crashing 72% from its August 2024 peak of ₹157.40 3, suggesting these investors are cutting losses before further deterioration.

2️⃣ Market leadership can shift rapidly in competitive EV segments

Ola Electric’s investor exits occur as the company loses ground to competitors like Ather Energy in India’s electric scooter market.

Recent Ola Electric developments