The archive · Hardware & Devices · Strategic decision · 2022–2026
Ola Electric's Tesla-style EV bet: $730M IPO, then sales and stock collapsed
Bhavish Aggarwal bet India would leapfrog to electric scooters; Ola Electric listed at $4.8B in 2024, then lost market share and over 70% of its stock value.
Ola Electric
What the business is
India's largest electric scooter maker: designs, manufactures, and sells e-scooters and e-motorcycles, with plans for its own battery-cell gigafactory.
Starting capital：Pre-IPO funding from SoftBank, Temasek, and others; IPO raised ~$730M (₹6,146 crore) in Aug 2024 at ₹76 per share.
How it started
Founded by Bhavish Aggarwal, creator of ride-hailing Ola, with a Tesla-like thesis: India would skip ahead to electric two-wheelers. Its first scooter shipped in early 2022, and by August 2024 it was India's biggest listing of the year, raising about $730M at a ~$4.8B valuation.
What happened
The stock popped 20% on debut and doubled to a ₹157 peak in the weeks after listing. Within months the story turned: an insolvency petition from creditor Rosmerta Digital Services against subsidiary Ola Electric Technologies sent shares to a record low of ₹46.86 (March 2025); government data showed 8,647 February 2025 registrations against Ola's claimed 25,000+; market share slid from over 35% to about 15% as Bajaj, TVS, and Ather gained; and Q1 FY26 revenue fell ~50% year on year to ₹828 crore while losses widened 23%.
How it ended up
Still operating but in reset: FY26 revenue guidance was cut from ₹42–47 billion to ₹30–32 billion, three rounds of layoffs removed roughly 2,100 roles, and the stock trades far below its ₹76 IPO price — down more than 70% from the ₹157 peak.
Background
Bhavish Aggarwal, founder of ride-hailing giant Ola, started Ola Electric with a Tesla-like thesis: India would leapfrog straight to electric two-wheelers, and a vertically integrated maker controlling design, manufacturing, and batteries would own the transition. The first scooters shipped in early 2022; by August 2024 it was India's biggest listing of the year, raising about $730M at ₹76 per share and a ~$4.8B valuation, backed by SoftBank and Temasek.
The stock popped 20% on debut and doubled to ₹157 within days, pricing in EV optimism. Then operations caught up with the story: an insolvency petition against its subsidiary, government registration data showing 8,647 scooters in February 2025 against Ola's claimed 25,000+, market share sliding from over 35% to about 15% as Bajaj, TVS, and Ather gained, and Q1 FY26 revenue down ~50% year on year to ₹828 crore with losses widening 23%.
By early 2026 Ola Electric is in reset: FY26 revenue guidance cut from ₹42–47 billion to ₹30–32 billion, roughly 2,100 jobs removed across three layoff rounds, and the stock down more than 70% from its peak. The company says restructuring toward automation and profitability is the path back.
What has to be true
- Vertical integration and gigafactory ambitions raised expectations faster than service quality and delivery could keep up.
- The IPO was priced on EV optimism, not on the operating reality of registrations, service complaints, and losses.
- Market share fell from over 35% to about 15% because Bajaj, TVS, and Ather executed better on volume and quality.
- An insolvency petition and registration dispute showed how quickly investor confidence turns when operations wobble.
What can be applied
A great category bet still needs operational reality: an oversubscribed IPO and a Tesla-style story do not protect you from service failures, registration chaos, and rivals with better execution.
Aftermath
As of February 2026 Ola Electric is still operating, but in reset mode: a ~5% workforce cut in January 2026, revenue guidance cut to ₹30–32 billion for FY26, and a stated focus on automation and profitability. The stock remains far below its ₹76 IPO price after peaking at ₹157. The company says it will contest the insolvency petition against its subsidiary and continues pushing e-motorcycles and its own battery plans, while Bajaj, TVS, and Ather hold the stronger volume position in India's electric two-wheeler market.
Sources
- SoftBank-backed Indian EV startup Ola Electric pops 20% on debut valuing firm at $4.8 billion
- Ola Electric shares sink over 70 pc from peak after insolvency petition against subsidiary
- Ola Electric to cut 5% of staff amid revenue slump and operational reset
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