Ola Electric's market share has collapsed from over 50% in April 2024 to just 6.5% in September 2026. A company that once sold every second electric scooter in India now struggles to sell even one in fifteen. Its September registrations stood at just 13,452, while TVS crossed 54,000 and Bajaj nearly 49,000. What's particularly damaging is that the overall electric two-wheeler market grew 89% that month. The market Ola helped create is growing rapidly, but customers are increasingly choosing its competitors.

Two recent decisions show what Ola now faces. In September, it began signing independent dealers, targeting more than 500 outlets after years of betting on company-owned stores. In October, it announced a ₹1,000 crore rights issue, months after raising ₹780 crore. The company that wanted to do without traditional dealerships now needs their help, and more money, to rebuild.

Selling directly made sense on paper. Ola could save dealer margins, control prices and expand quickly. But removing dealers didn't remove their responsibilities. Scooters still needed spare parts, mechanics and someone nearby to answer an angry customer. Between September 2023 and August 2024, the consumer protection authority received 10,644 complaints against Ola. The company said it had resolved 99.1%, yet 103 of 130 customers who responded to a government follow-up remained dissatisfied.

The damage reached beyond repair bills. A scooter stranded for weeks means a commuter struggling to get to work, a family unlikely to recommend the brand, and a potential buyer worrying about resale value. By then, TVS, Bajaj and Ather had become credible alternatives. Ather delivered 2.63 lakh vehicles in FY26, up 69%.

Ola's financials show the cost. FY26 revenue halved from ₹4,514 crore to ₹2,253 crore, with a net loss of ₹1,833 crore and free cash outflow of ₹1,492 crore. Yet gross margin improved from 17.9% to 30.6%. Ola appears to have improved manufacturing economics while losing the sales volume needed to cover its wider costs.

Management says average service turnaround fell from nine days in October 2025 to about one day in March 2026. That is progress, but September registrations suggest customers are not convinced yet. Meanwhile, Ola has installed 2.5 GWh of battery-cell capacity and plans more, even as its scooter sales remain far below earlier levels. Making cells could eventually cut costs, but factories need orders to justify their expense.

Ola helped build India's electric scooter market. It can still recover. But its turn towards dealers suggests a lesson that older automakers learned long ago: the sale ends in minutes; the responsibility to the customer lasts for years.

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.

BYJU’S parent Think & Learn will hold a 32% stake in Aakash after settling a shareholding dispute.

The deal comes as insolvency proceedings continue and Qatar Holding seeks over $235 Mn from Byju Raveendran.

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Tonbo Imaging has set a ₹665-₹700 price band for its ₹852 Cr IPO, valuing the defence tech firm at ₹4,010 Cr.

The all-OFS issue offers an exit to existing shareholders, with no proceeds going to the company.

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Zetwerk has set its IPO price band at ₹143-₹151 per share, targeting ₹5,012 Cr. The issue includes a ₹2,830 Cr fresh issue and an OFS of 14.45 Cr shares.

The manufacturing marketplace aims for a ₹25,583 Cr valuation.

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TimBuckDo has partnered with Hubble to offer exclusive brand rewards to its network of over 7 lakh student gig workers.

The deal unlocks discounts across 500+ brands and 20+ categories.

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Lenskart investor Alpha Wave Ventures sold 2.64 Cr shares through a bulk deal at ₹645.31 apiece, collecting ₹1,704.8 Cr.

The transaction continues the wave of exits by the eyewear company’s early investors, including SoftBank, Temasek and Abu Dhabi Investment Authority.

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Nazara Technologies founder Nitish Mittersain has stepped down as MD, moving to a non-executive role.

Mithun Sacheti becomes executive director, while Arun Agrawal takes over as CFO.

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InCred Capital has named Abhinav Khanna CEO of Capital Markets and Abhimanyu Kalra MD and co-head of equities.

Khanna previously worked at ValueQuest and Citigroup, while Kalra spent 18 years at Nomura.

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River Mobility has entered the international market with its first overseas showroom in Kathmandu, Nepal.

The electric two-wheeler startup partnered with Vishal Group to kick off its global expansion.

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