The ascent and oscillation of India’s electric vehicle trailblazer Ola

Ola, once a shining star in India’s startup world, is now facing multiple crises. Founded in 2010, the company expanded rapidly from ride-hailing to electric vehicles and battery cells, challenging global giants like Uber. Marquee global investors such as Japan’s SoftBank, US-based Tiger Global, and Singapore’s Temasek bankrolled this expansion, with Ola’s electric vehicles (EV) arm raising nearly $734m in a blockbuster IPO last year, India’s biggest in 2024. But its ambitious rise has come with several controversies, particularly at its EV arm. Sales of Ola’s scooters have dropped to less than half from April last year, and the company’s losses have widened. Videos of Ola scooters catching fire or breaking down mid-ride have circulated on social media. Moreover, there’s an ongoing government inquiry regarding licences and registrations at hundreds of newly-opened Ola showrooms, and a vendor has filed an insolvency plea against the company. These issues have raised concerns among investors, as Ola aims to sell 50,000 units monthly to turn profitable. Despite restructuring efforts, the company faces stiff competition from established automakers also entering the electric scooters market.

Source: https://www.bbc.com/news/articles/c15vgegl7pjo