Ola Electric to Secure Rs 2,000 Crore Funding for Battery Arm Ola Cell Technologies

Ola Electric Plans to Raise Up to Rs 2,000 Crore via Battery Arm Stake Sale

Ola Electric, a leading electric two-wheeler manufacturer, is set to raise up to Rs 2,000 crore by selling a minority stake in its battery arm, Ola Cell Technologies (OCT). This development comes as part of the company's efforts to restructure operations and strengthen its balance sheet, amidst a recent decline in electric two-wheeler sales.

Ola Cell Technologies, the battery arm of Ola Electric, owns India's first gigafactory, a lithium-ion cell manufacturing plant located in Krishnagiri, Tamil Nadu, with 1.5 GWh of operational capacity. The company plans to scale up to 6 GWh by the end of the current financial year. Avendus and Motilal Oswal have been mandated to run the fundraising process.

The stake dilution will also determine the market valuation of a crucial battery infrastructure asset, which has attracted interest from financial investors, including leading sovereign wealth funds. The gigafactory, with an upfront investment of Rs 3,500 crore, marks a significant step towards localizing battery cell manufacturing in India, a critical capability for reducing dependence on imported cells and building a domestic EV supply chain.

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Ola Electric has been restructuring its operations, including a 5% workforce layoff in January, to build a "leaner organization" positioned for long-term, profitable growth. The company is also doubling down on speed and discipline through increased automation across its front-end operations. Recent brokerage reports suggest key steps required to turn around the business trajectory include building a sustainable servicing network, establishing a stable senior leadership team, and improving product reliability.

Ola Electric has also established a Battery Innovation Centre, which houses over 200 PhDs and researchers, and has built a portfolio of close to 400 patents. The company has launched residential BESS systems, 'Shakti', and plans to enter commercial energy storage systems. Ola Electric has developed dry electrode manufacturing technology, considered one of the most significant innovations in lithium-ion battery production, and has been allocated 20 GWh under the government's Advanced Chemistry Cell (ACC) Production Linked Incentive scheme.