Ola Electric Approves ₹1,500 Crore Fundraise; COO Hyun Shik Park Resigns
Ola Electric Mobility has secured board approval to raise as much as ₹1,500 crore, opening another round of fundraising as the electric two-wheeler manufacturer invests in battery-cell production while confronting weaker sales and a steep decline in market share.
In a separate management development, chief operations officer Hyun Shik Park has resigned, effective from the close of business on September 5, 2026. The company attributed his departure to “personal reasons” but did not announce a successor.
Fundraise can use several routes
The board approved the fundraising proposal at its meeting on September 5. Ola Electric may issue equity shares or securities that can be converted into or exchanged for equity.
The available routes include a further public offer, rights issue, qualified institutional placement, private placement or another method permitted under applicable laws. The transaction remains subject to shareholder consent and other regulatory approvals, meaning the board’s decision is an enabling approval rather than confirmation that the entire ₹1,500 crore has already been raised. The Economic Times
Ola Electric has not disclosed the final structure, issue price, investor group or timetable for the proposed transaction. Those details will depend on the fundraising route eventually selected.
The board also approved an increase in the company’s authorised share capital from ₹8,318.5 crore to ₹8,721.9 crore, subject to shareholder approval. Entrackr
Second major capital exercise in three months
The latest proposal follows Ola Electric’s ₹780 crore qualified institutional placement in June. During that transaction, the company allotted approximately 21.76 crore shares to qualified institutional buyers at ₹35.86 per share.
The QIP had initially been planned at ₹500 crore but was expanded after receiving investor demand. The new board approval could therefore give Ola Electric access to substantially more equity-linked capital within a relatively short period.
The company has not specified how the fresh proceeds will be allocated. Its broader spending programme, however, includes electric-vehicle manufacturing, battery-cell production and expansion into battery energy-storage systems.
In May, the board approved investments totalling ₹2,000 crore in two wholly owned subsidiaries. Of that amount, ₹1,500 crore was earmarked for Ola Electric Technologies, while ₹500 crore was approved for Ola Cell Technologies. Financial Express
Hyun Shik Park exits battery operations role
Park joined Ola Electric in August 2023 after spending more than 36 years at South Korean battery and electronics company LG. He was recruited to oversee operations at Ola’s cell-manufacturing business and held responsibility for the company’s Gigafactory.
His resignation comes at an important stage in Ola Electric’s battery strategy. The company has been increasing cell production and integrating domestically manufactured batteries into its vehicles and energy-storage products.
Ola Electric has confirmed only that Park left for personal reasons. Any suggestion that the resignation resulted from the company’s financial position, competitive performance or fundraising plans would be unverified.
Revenue falls, although quarterly loss narrows
Ola Electric’s revenue from operations declined to ₹455 crore in the first quarter of FY27, from ₹828 crore in the corresponding period a year earlier. Its consolidated net loss narrowed to ₹336 crore from ₹428 crore.
Vehicle registrations during the quarter fell to 43,062 units, compared with 54,676 units in the year-earlier period, according to Vahan data reported by The Economic Times.
The pressure was also visible in August, when Ola Electric registered sales of 13,849 electric two-wheelers. That represented a 29% year-on-year decline and gave the company a market share of about 7.7%, down from 17.7% in August 2025. Competitors including TVS Motor, Bajaj Auto and Ather Energy have gained ground as competition in India’s electric scooter market has intensified. The Economic Times
For FY26, revenue from operations fell to ₹2,253 crore from ₹4,514 crore in FY25. Deliveries declined to 173,794 vehicles from 307,846, although the consolidated net loss narrowed by approximately 19.5% to ₹1,833 crore.
Why the proposed funding matters
Fresh capital would give Ola Electric additional flexibility as it balances several costly priorities: rebuilding electric two-wheeler sales, expanding its service and distribution presence, scaling battery-cell manufacturing and entering the energy-storage market.
An equity or convertible-security issue could strengthen the company’s balance sheet without adding conventional debt. The eventual impact on existing investors, however, will depend on the issue price, number of securities issued and fundraising structure. A sizeable equity issuance could dilute existing shareholdings.
The board also approved the reappointment of Manoj Kumar Kohli and YourStory founder Shradha Sharma as non-executive independent directors for second five-year terms beginning December 6, 2026. Their reappointments remain subject to shareholder approval.
Ola Electric’s next disclosures will be important in determining whether it seeks the full ₹1,500 crore, which fundraising route it chooses and how the proceeds will support its vehicle and battery businesses.
