Ola Electric wants permission to raise another ₹1,500 crore, barely three months after raising ₹780 crore from institutional investors. The route is still open: rights issue, FPO, QIP or another structure. But the larger point is hard to miss. Ola raised ₹5,275 crore of fresh capital in its IPO in August 2024 and is already back for another cheque.
The reason is visible in the numbers. Ola’s gross margin improved from 17.9% in FY25 to 30.6% in FY26. Yet revenue fell from ₹4,514 crore to ₹2,253 crore as deliveries dropped 44% to 1.74 lakh vehicles. Adjusted operating EBITDA loss was ₹1,203 crore, while free cash outflow stood at ₹1,492 crore.
Ola has improved the economics of making a scooter, but it is selling too few scooters to absorb the cost of factories, staff, service, technology and corporate overhead. That is a serious problem in manufacturing, where scale is supposed to spread fixed costs.
The market is not shrinking around Ola either. In August, TVS sold 48,873 electric two-wheelers, Bajaj 41,018 and Ather 28,707. Ola sold 13,849, down 29% year on year, and its market share fell to 7.7% from 17.7%. Ather is the comparison. In Q1 FY27, it delivered 83,173 scooters, reported ₹1,217 crore of operating revenue and turned EBITDA positive at ₹9 crore. Ola delivered roughly 39,000 vehicles.
This makes the capital problem more uncomfortable. Ola is trying to repair scooter sales and service while also funding cells, batteries, motorcycles and energy storage. Its cell business generated about ₹20 crore of revenue in FY26 but consumed roughly ₹647 crore of free cash.
The company has already changed how it uses IPO money. In March, it proposed shifting another ₹575 crore away from R&D, including ₹475 crore for debt repayment. ICRA had warned that cash burn, weaker revenue and the cell project could force Ola to raise more capital unless volumes recovered.
That is now happening. The June raise was done at ₹35.86 a share, less than half the ₹76 IPO price. Another ₹1,500 crore near current valuations would mean meaningful dilution.
The problem is no longer whether Ola can find money. It can. The harder question is whether fresh capital is buying growth or simply buying more time for the operating model to catch up with Bhavish Aggarwal’s ambition.
Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.
“Badmoshi Nahi Mitr”: KRAFTON To Invest $250 Mn
KRAFTON is taking its India bet beyond gaming, planning to invest another $250 Mn in AI, robotics and deeptech startups.
The move builds on the $250 Mn it has already invested in the country, alongside its $670 Mn India-focused venture fund.
Read more here
“Aao Twist Karein”: Ola Electric Opens First Dealer-Led Stores
Ola Electric is handing the retail wheel to dealers, opening its first dealer-led stores across seven states.
It now wants 500+ outlets in the next two quarters, while existing stores turn into product experience centers.
Read more here
“Fundraise Bhi, Farewell Bhi”: Ola Electric Approves ₹1,500 Cr Raise As COO Quits
Ola Electric’s board has approved a plan to raise up to ₹1,500 Cr through equity shares or convertible securities. The update came with a leadership change: COO Hyun Shik Park resigned effective September 5, citing personal reasons.
Ola is seeking more financial flexibility after a ₹780 Cr QIP in June and a tough phase for its EV business.
Read more here
“Kuch Daring Karna Hai”: TCS HyperVault To Invest ₹70,000 Cr
TCS HyperVault is going big on AI infrastructure, planning to invest ₹70,000 Cr in a 1 GW data centre campus in Hyderabad.
The 264-acre facility will use liquid cooling to power frontier AI and hyperscaler workloads.
Read more here
“Ek Sunehre Sapne Ka Aagaman”: NoPaperForms Files Updated DRHP
Meritto parent NoPaperForms is inching closer to the IPO lane with an updated DRHP for a ₹375 Cr+ issue.
The offer includes a ₹375 Cr fresh issue and an OFS of up to 3.8 Cr shares by Info Edge.
Read more here
“Kar Har Maidan Fateh”: Flipkart Minutes Plans to Add 1,000 Dark Stores
Flipkart Minutes could be gearing up for a serious quick-commerce sprint, with UBS expecting up to 1,000 new dark stores by mid-2027.
That could nearly double its network to 2,000 stores and help close the gap with Blinkit.
Read more here
“Ek-Duje Ke Vaaste”: Nykaa Buys Another 24.2% Stake In Earth Rhythm
Nykaa has completed the acquisition of an additional 24.2% stake in clean beauty brand Earth Rhythm. The board-approved transaction was valued at up to ₹9.4 Cr.
The move deepens Nykaa’s ownership of Earth Rhythm as it scales its House of Nykaa portfolio.
Read more here
“Hum Bhi Hain Josh Mein”: WhatsApp Launches Bill Payments In India
WhatsApp has launched bill payments in India, letting users find, manage and pay household and utility bills inside the app. The feature is supported by Bharat Connect and covers 22,722 billers across 30 categories.
The rollout adds another high-frequency use case to WhatsApp’s payments stack, from electricity and gas to FASTag, insurance, credit cards and loan repayments.
Read more here
D2C luggage brand Mokobara has packed ₹170 Cr into its latest Series C round, led by Sauce.vc.
Read more here
Ola Electric is back in fundraising mode, with its board approving a fresh ₹1,500 Cr capital raise.
Read more here
SUGAR Cosmetics has raised ₹145 Cr from A91 Partners, but at a steep 75-80% valuation cut to ₹550-600 Cr. The haircut comes as revenue fell and losses nearly doubled to ₹135 Cr in FY25.
Read more here
D2C sneaker brand Comet has laced up ₹100 Cr in Series B funding, led by Verlinvest.
Read more here
Medulance has raised ₹24 Cr in Series A funding from Auxano, Alkemi and Equentis to scale its emergency response network.
Read more here
Leanwatts has raised $2 Mn to build portable EV chargers tailored for India’s roads and charging gaps.
Read more here
Ultrahuman has bagged $70 Mn to go beyond smart rings and build an AI-powered healthtech platform.
Read more here
Voice-first AI tutoring platform YoLearn.ai has raised an undisclosed seed round led by ABP Education.
Read more here
