Ola Electric Mobility, once a star IPO that drew bids more than four times its share offering, is now struggling to attract new investors as it attempts a strategic shift toward home battery storage. The SoftBank-backed EV maker has seen its market share shrink, its stock tumble nearly 53% this year, and its cash burn intensify. Several potential financiers have declined to participate in Ola’s planned ₹1,500 crore fundraise, while lenders have also hesitated on a ₹1,700 crore debt proposal approved in May.
Founder Bhavish Aggarwal is banking on a new push into residential battery backup systems after the company reported a steep drop in revenue and sales in the latest quarter, along with negative operating cash flow. Ola’s share in the e-scooter segment has plunged to 11.5% from 30% a year earlier. Analysts at Kotak Securities warn the firm is under “visible strain,” with rising debt obligations and shrinking net cash.
Ola is trying to stabilize operations through cost-cutting, improved margins, and new product launches. Its newly introduced Ola Shakti battery line aims to generate significant revenue in coming years, but analysts caution that the capital-heavy cell business faces pricing pressure and stiff competition. Meanwhile, established rivals like Ather, TVS, Bajaj and Hero continue to gain ground, making Ola’s recovery path increasingly challenging.
