Daijiworld Media Network - Mumbai
Mumbai, Nov 26: Once the darlings of investors, Ola Electric Mobility Ltd. is struggling to regain momentum as its share price plunges and market share shrinks. The SoftBank-backed electric scooter maker, which saw its IPO oversubscribed more than four times last year, is now finding it difficult to secure investors for its latest fundraising efforts.
Ola’s challenges are multi-fold. The company reported a 43% drop in revenue and a 47% fall in sales in its latest quarterly results, prompting it to lower full-year sales expectations to nearly 40% below earlier guidance. Its market share in the e-scooter segment fell sharply to 11.5% in October from a market-leading 30% last year. Analysts at Kotak Securities warned that the company is showing “visible strain” and faces escalating risks if core volume issues are not addressed.
Chairman Bhavish Aggarwal is betting on a new venture into home battery storage to revive the business. The Ola Shakti line, launched last month, targets homes and small businesses with backup power systems priced between Rs 1.2 lakh and Rs 1.25 lakh. Based on Ola’s proprietary 4680 Bharat battery cells, the segment is projected to generate Rs 1 billion in revenue in the March quarter and aims for Rs 10 billion by the end of the next fiscal year, accounting for nearly one-third of projected revenue.
However, experts caution that the home battery market is highly competitive and capital-intensive. Most Indian households rely on inexpensive lead-acid backup systems, and Ola will need a strong sales network, technical education for consumers, and strategic partnerships to capture market share. Analysts noted that a purely retail-focused approach may face significant hurdles.
Meanwhile, Ola continues to grapple with regulatory scrutiny, allegations of cross-border technology theft, and stiff competition from established players like Bajaj Auto, TVS Motor, Hero MotoCorp, and startup rival Ather Energy. While the company briefly saw stock gains in August and September, those have mostly been wiped out.
Aggarwal has emphasised cost efficiency, margin improvement, and product expansion as key strategies, with plans to introduce motorcycles and resolve operational challenges. Analysts say the company’s revival will depend on a strong core automotive business alongside its foray into battery storage.
Ola Electric’s turnaround story is still unfolding, and investors are watching closely to see whether the home battery storage pivot can stabilize the company amid fierce competition and financial pressures.