Ola Electric, a major player in the electric vehicle (EV) sector, has decided to reallocate ₹475 Cr from its research and product development budget to debt repayment, as reported by Inc42 Media. This move is part of the company’s strategy to utilize its ₹5,500 Cr IPO proceeds more efficiently.
The decision will reduce the allocation for research and product development from ₹1,505 Cr to ₹930 Cr, while increasing the funds for debt repayment from ₹395 Cr to ₹870 Cr. Additionally, ₹100 Cr will be directed towards organic growth initiatives.
This marks the second significant change in fund allocation within a year, following a previous adjustment in August 2025. The revision comes amidst declining EV sales and ongoing financial losses, leading to a more focused approach on debt management and growth strategies.
Despite facing challenges in the market, Ola Electric is expanding its presence in the battery energy storage system (BESS) segment by emphasizing cell manufacturing. The company is also exploring avenues to raise up to ₹2,000 Cr by selling a stake in its battery arm to financial investors.
By adapting its financial strategy and prioritizing debt repayment, Ola Electric aims to navigate the competitive EV landscape more effectively, signaling potential shifts in the industry’s financial management practices.
Source: Inc42 Media