Ola Electric looks to secure Rs 1,200 crore in private credit

Bhavish Aggarwal, Founder, Ola Electric

Ola Electric has engaged with bankers to secure Rs 1,000-1,200 crore ($120-140 million) in private credit as the electric two-wheeler startup looks to refinance an existing bank loan, people aware of the developments said.

This will be the Bengaluru-based company’s second fundraise in under 12 months since going public in August 2024. Earlier this year, Ola Electric received board approval to raise Rs 1,700 crore by selling non-convertible debentures (NCDs) and other eligible debt securities.

The purpose of the fundraise, however, is different this time.

“Most of the fresh funds will be used for the refinancing of an existing bank loan, ” one of the persons cited above said. "Ola Electric will put together this plan over the course of the current financial year (FY26)."

A spokesperson for Ola Electric, however, denied the developments.

"Your claims are factually inconsistent and misleading. We urge you to refrain from publishing unverified reports that are not substantiated by accurate facts. We request that you exercise due diligence in verifying the information before publication," a company spokesperson told Moneycontrol.

The company was also open to other options, such as a qualified institutional placement and more, to raise these funds, and asked bankers to pitch with options.

Bhavish Aggarwal, founder, Chairman and Managing Director of Ola Electric, however, decided to proceed with a private credit line, sources said.

The talks of a fresh fundraising come at a time when Ola Electric has ceded market share to legacy players.

Meanwhile, its losses have widened to Rs 870 crore in Q4FY25 from a year earlier. Its share price, which traded at Rs 39.8 on the BSE on July 11, has also been on a downward trajectory.