Electric two-wheeler company Ola Electric has initiated a plan to raise up to Rs 2,000 crore by selling a stake in its battery subsidiary Ola Cell Technologies (OCT), according to sources familiar with the development. Investment bank Avendus and Motilal Oswal are said to have been mandated to run the fundraising process.
The development comes at a time when Ola Electric is trying to restructure operations and shore up its balance sheet as it works towards a business turnaround. A clarification was sought from Ola Electric Mobility on the exchanges, with a reply still awaited.
OCT owns a lithium-ion cell manufacturing plant in Tamil Nadu with 1.5 GWh of operational capacity and plans to scale to 6 GWh by the end of this financial year. As per sources, the stake sale effort will also determine the market valuation of a crucial battery infrastructure asset that has not yet been ascertained.
The facility, built with an upfront investment of about Rs 3,500 crore, is seen as a step toward localising battery cell manufacturing in India. It is expected to support energy storage products and systems for multiple sectors beyond the two-wheeler market.
Meanwhile, Ola Electric’s two-wheeler sales in February fell 47% month-on-month to less than 4,000 units and its market share dropped below 4%. Last month, the firm reported a net loss of Rs 487 crore in the third quarter of the financial year 2025-26 (Q3FY26).
The company’s revenue from operations fell 55% year-on-year to Rs 470 crore in Q3FY26 from Rs 1,045 crore in Q3FY25. The fall in revenue was attributed to a sharp drop in volume as the company's scooter sales nosedived to 32,680 units in Q3FY26 from 84,029 units in the same period last year.