Electric two-wheeler maker Ola Electric is planning to raise up to ₹2,000 crore by selling a minority stake in its battery subsidiary, Ola Cell Technologies (OCT), as part of efforts to strengthen its balance sheet and support an ongoing business turnaround, sources familiar with the development said.
The fundraising process is being managed by investment banks Avendus and Motilal Oswal. The proposed stake dilution is also expected to help establish the market valuation of OCT, a key battery manufacturing asset whose valuation has not yet been formally determined. The asset has reportedly attracted interest from financial investors, including sovereign wealth funds, due to its strategic importance in India’s emerging EV ecosystem.
Capacity Expansion and Localisation Push
OCT operates a lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu, with an existing capacity of 1.5 GWh. The company plans to scale this capacity to 6 GWh by the end of the current financial year.
The gigafactory, which cost ₹3,500 crore to build, is a big step toward making battery cells in India, which will reduce the country’s reliance on imports and make the domestic EV supply chain stronger. The building will also be useful for storing energy for things other than electric cars.
Focus on Innovation and Energy Storage
Ola Electric is moving beyond mobility into energy storage systems, like “Shakti” for homes, and plans to move into the commercial market as well. It has more than 200 researchers working at its Battery Innovation Center, and it has filed for almost 400 patents in different chemistries and cell formats.
The company has also developed dry electrode manufacturing technology and is producing its 4680-format Bharat Cell, which has already been deployed in its electric vehicles for over six months.
“We didn’t name the company Ola Auto; we named it Ola Electric, and our vision has always been to bring the whole energy storage supply chain into the market”, said founder Bhavish Aggarwal.
Turnaround Efforts Underway
The fundraise comes as Ola Electric undertakes restructuring measures, including a 5% workforce reduction announced earlier this year. The company is focusing on building a leaner organisation, improving product reliability, strengthening its service network, and stabilising leadership, as it aims for long-term profitable growth amid increased competition and declining sales.
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