Ola Electric’s board has approved a fundraise of 1,700 crore rupee (US$197.83 million) through non-convertible debentures (NCDs) or other eligible securities, marking the company’s first fundraising since its public listing.

The private placement will be executed in one or more tranches.

This move follows a downgrade of Ola Electric’s ratings by credit rating agency ICRA, which cited low sales volumes and ongoing cash burn affecting profitability.

The company is set to begin deliveries of its electric motorcycle, the Roadster X, on May 23, as it aims to increase market share in the competitive electric two-wheeler sector.

Ola Electric faces stiff competition from Ather Energy, TVS Motor, and Bajaj Auto.

To cut costs, Ola Electric has closed regional warehouses and reduced its workforce by about 1,000 employees. It also restructured its sales and service networks.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ The E2W market is experiencing a significant power shift from startups to legacy manufacturers

India’s electric two-wheeler market dynamics have fundamentally changed since Ola Electric’s earlier dominance, with legacy manufacturers now controlling the majority of market share.

TVS Motor recently surpassed Ola Electric to become the market leader in April 2025, selling 19,736 units compared to Ola’s 19,709 units, representing a dramatic 42% year-over-year decline for Ola 1.

This shift reflects a broader industry pattern where established automotive players are leveraging their manufacturing expertise, distribution networks, and brand trust to outcompete EV startups.

Legacy OEMs including TVS, Bajaj, and Hero now command 55% of the E2W market, with Bajaj demonstrating particularly impressive growth—92.98% year-over-year in March 2025 2.

The transition illustrates how traditional manufacturers have successfully navigated the initial disruption period and are capitalizing on their structural advantages in manufacturing scale and after-sales service networks.

2️⃣ Regulatory scrutiny and consumer complaints create compounding challenges for Ola Electric

Ola Electric’s fundraising comes against a backdrop of intensifying regulatory oversight and consumer dissatisfaction that have significantly impacted its market position and share price.

Recent Ola Electric developments