Ola Electric Plans Major Fundraising to Expand Battery Manufacturing
Ola Electric is planning to raise up to ₹2,000 crore by selling a stake in its battery subsidiary, Ola Cell Technologies. This initiative comes as the electric vehicle (EV) maker aims to expand its domestic battery manufacturing and energy storage capabilities.
Ola Cell Technologies operates a lithium-ion cell manufacturing facility in Tamil Nadu, which currently has an operational capacity of about 1.5 GWh. The company intends to scale this capacity to 6 GWh by the end of the current financial year, reflecting its commitment to enhancing production capabilities.
The fundraising process is being managed by investment banks Avendus Capital and Motilal Oswal Financial Services. This strategic move is particularly crucial as Ola Electric has faced significant financial challenges recently.
In the third quarter of FY26, Ola Electric reported a staggering 55% year-on-year decline and a 32% quarter-on-quarter decline in operating revenue, amounting to ₹470 crore. The company delivered 32,680 electric two-wheelers (E2Ws) during this period, marking a 61% drop from the 84,029 units delivered in the same quarter the previous year.
Furthermore, Ola Electric has reported a negative cash flow from operations of ₹866 crore during the nine-month period ending December 31, 2025. This financial strain underscores the urgency behind the fundraising efforts.
In addition to its battery manufacturing ambitions, Ola Electric has developed dry electrode manufacturing technology for lithium-ion batteries and has built a portfolio of nearly 400 patents at its Ola Battery Innovation Centre. The company has also introduced residential battery energy storage systems and is planning to expand into commercial energy storage solutions.
The gigafactory project, which is central to Ola Electric’s operations, was built with an upfront investment of about ₹3,500 crore. Despite the current financial hurdles, the company’s shares ended a trading session 5.28% higher at ₹24.32, indicating some investor confidence amid the challenges.
As Ola Electric moves forward with its fundraising plans, observers are keenly watching how these developments will impact the company’s future operations and its position in the competitive EV market.
