Ola Electric, India’s leading electric scooter maker, is facing tough times as investors turn away from its latest fundraising efforts. Founder Bhavish Aggarwal now bets on a new home battery storage product to spark a turnaround amid falling sales and cash woes in late 2025.
Fundraising Hurdles Mount for Ola
Ola Electric aimed to raise Rs 1,500 crore through equity to fuel growth, but potential backers have backed out. Sources close to the talks say the company’s weak sales and ongoing losses made investors wary.
This comes after a board-approved Rs 1,700 crore debt plan in May also failed to attract lenders. The electric vehicle firm, backed by SoftBank, saw its stock price drop over 50 percent this year, wiping out much of the hype from its 2024 IPO.
Experts point to broader market shifts. Competition from rivals like Bajaj and TVS has eaten into Ola’s share in the EV scooter space. One analyst noted that negative cash flow and high burn rates are red flags for funders in a slowing economy.
Aggarwal’s Big Bet on Home Batteries
Bhavish Aggarwal, Ola’s chairman and founder, launched Ola Shakti in October 2025 as the company’s first non-vehicle product. This home battery system stores power from solar or the grid, offering backup for homes and small businesses.
Priced from Rs 29,999, Ola Shakti promises automotive-grade safety and up to 1.5 hours of runtime for essentials like ACs and fridges. Aggarwal sees it as a way to tap India’s growing energy storage market, valued at $12 billion.
The move leverages Ola’s in-house battery tech. By scaling to 5 GWh capacity, the firm aims to boost revenue beyond EVs. Early bookings started at Rs 999, with plans to sell through Ola’s retail network.
- Key features of Ola Shakti include portable design for easy setup.
- It supports solar integration to cut electricity bills.
- High efficiency ratings make it stand out in a crowded market.
Sales Slump and Financial Strain
Ola’s troubles deepened with a 43 percent revenue drop in its latest quarter, hitting Rs 1,045 crore. Sales plunged 47 percent, leading to wider losses of Rs 564 crore compared to last year.
Market share has shrunk as customers report issues like faulty designs and poor service. Social media buzz highlights customer complaints and high employee turnover, adding to the company’s woes.
A recent report showed Ola’s EV registrations falling sharply. This mirrors challenges in India’s auto sector, where economic slowdowns hit two-wheeler demand.
Here’s a quick look at Ola’s recent financial highlights:
| Metric | Latest Quarter | Year-Over-Year Change |
|---|---|---|
| Revenue | Rs 1,045 crore | Down 19.4% |
| Net Loss | Rs 564 crore | Up from Rs 376 crore |
| EBITDA Loss | Rs 460 crore | Up from Rs 301 crore |
| Stock Price Drop | 53% in 2025 | N/A |
These numbers underline the urgency for a pivot. Aggarwal has vowed to fix service issues and cut costs, but skeptics question if batteries alone can reverse the slide.
Employee and Leadership Challenges
Inside Ola, reports of a tough work culture have surfaced. High staff turnover and recent tragic events, including employee suicides, have drawn scrutiny to Aggarwal’s management style.
Critics compare Ola’s path to other Indian startups like Byju’s, where rapid growth led to later crises. Aggarwal’s public spats, like his 2024 clash with a comedian over service complaints, fueled negative sentiment.
Despite this, supporters praise Aggarwal’s vision for clean energy. He aims to make Ola a leader in batteries, much like Tesla’s Powerwall success.
What Lies Ahead for Ola Electric
Looking to 2026, Ola plans to expand battery production and enter new markets. Success with Ola Shakti could open doors to more funding, but experts warn that execution is key.
If sales rebound and batteries gain traction, Ola might regain investor trust. For now, the firm must address core issues like quality control and customer satisfaction to survive.
The EV industry in India is booming, with government incentives for green tech. Ola’s story shows how quickly fortunes can change in this fast-paced sector.
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