The Bhavish Aggarwal-led company has been asked to provide more information by the Central Consumer Protection Authority (CCPA), which is looking into consumer complaints against Ola Electric. Ola Electric stated in an exchange filing that the consumer protection agency had asked the business for more information and documents. Ola Electric received a show-cause notice from the CCPA in October of this year due to claims of poor customer service, misbehaviour, delayed service and delivery, defective car sales, and numerous other consumer complaints. Ola Electric has confirmed that it will comply with the agency’s 15-day deadline for submitting its response.
Ola Electric Claimed of Resolving 99.1% Cases
On October 21, Ola Electric responded to the notification by stating that 99.1% of the complaints it had received had been handled. But according to a report last month, the Authority discovered that 80% of the purported resolutions were never put into practice. It is important to note that for a significant portion of this year, complaints on social media regarding the functionality of Ola Electric scooters have kept mounting.
Customers complained about unresolved hardware and software problems, poor service, and concerns with the company’s staff on social media platform X. Ola Electric promised to provide a one-day repair guarantee and a backup scooter if the problems are not fixed within a day in order to address this problem earlier this year. The business announced earlier this week that it intends to double its network of corporate-owned stores to 4,000 by December 20 as part of this strategy. According to the company, Ola Electric will run India’s largest EV distribution network, spanning every pin code in the nation, with more than 3,200 new stores scheduled to open.
Gig and S1 Z Range by Ola Electric
Given that India’s gig economy is expected to treble in size and employ over 10 million people in the next years, Ola Electric unveiled a new line of reasonably priced e-scooters last month, with pricing starting at less than INR 40,000. Ola Electric’s stock rose 5.67% and closed the day at INR 73.47 on the BSE, reflecting the positive market reaction.
The new range includes the Ola Gig, which costs INR 39,999 and is designed for gig workers who travel shorter distances. The S1 Z series offers an affordable alternative to the original S1 model, with a starting price of INR 59,999. However, going by current allegations and investigations, Ola Electric needs to battle really hard to attract customers towards these launch products. But in the midst of all of this, Ola Electric’s stock has recently surged on the exchanges. The stock has rebounded in recent weeks after plunging to all-time lows in November. On the BSE, shares of Ola Electric closed the trading session on 5 December 2024 up 0.11% at INR 98.50.
Ola Electric introduced a new range of affordable e-scooters, with prices starting at less than INR 40,000, in light of the prediction that India’s gig economy will double in size and employ over 10 million people in the upcoming years. The market reacted favourably, as Ola Electric’s stock increased 5.67% and ended the day at INR 73.47 on the BSE.
The Ola Gig, which costs INR 39,999 and is intended for gig workers who travel lesser distances, is part of the new line. With a starting price of INR 59,999, the S1 Z series provides a cost-effective substitute for the original S1 model.
Bhavish Aggarwal, the CEO of Ola Electric, wrote on X that the S1 Z is identical to the S1 but more reasonably priced. In a different post, he predicted that India’s gig economy would double in size in the next years, employing over 10 million people. Regrettably, these employees are compelled to operate products of inferior quality at a significantly elevated cost.
Coming up With Four New Variants
The four new models—Ola Gig, Ola Gig+, Ola S1 Z, and Ola S1 Z+—are designed to cater to a variety of use cases, including small business owners, gig workers, and urban commuters. The Ola Gig and Gig+ will start deliveries in April 2025, and the Ola S1 Z and S1 Z+ will follow in May 2025. These models are available for reservations, with prices starting at INR 499.
“The pricing is very competitive—50-60% lower than other market options—reflecting the company’s expectation of a twofold surge in demand,” said Kripa Ananthan, head of design at Ola Electric. According to Ananthan, Ola Electric anticipates that the gig worker market will grow quickly, tripling from the present 5 million to 10 million in the upcoming years. Aggarwal reaffirmed in another X post that Ola Cabs and Ola Electric will collaborate to expand the use of these new products.
Competitiveness and Characteristics
Current models like Yulu’s electric scooter Wynn, which costs INR 59,999 and has a top speed of 25 kmph and a range of 70 km, Kinetic Green’s Zing Big B, which costs INR 75,990 and has a similar top speed of 25 kmph and a range of 100 km, and Okinawa’s R30, which costs INR 61,998 and has a top speed of 25 kmph and a range of 60 km, will compete with Ola’s Gig scooters.
A detachable 1.5 kWh battery powers the Ola Gig, a scooter with an IDC-certified range of 112 km and a top speed of 25 kmph. The Ola Gig+, which costs INR 49,999, has a detachable single or twin battery arrangement, an IDC-certified range of 81 km (157 km with dual batteries), and a top speed of 45 kmph for customers who need more range and cargo capacity.
Both models, which will be offered in retail and battery-as-a-service, are made with fleet operators and gig economy workers in mind. The Ola S1 Z, which costs INR 59,999, is aimed towards elders, students, and urban commuters. With a range of up to 146 kilometres, it has two 1.5 kWh detachable batteries. At INR 64,999, the Ola S1 Z+ is intended for light commercial customers and small business owners. Its performance specifications, including the detachable battery mechanism, are identical to those of the S1 Z.
The electric two-wheeler maker Ola Electric has restructured to reduce its workforce by roughly 500 employees due to concerns about its losses and after-sales service issues. According to the media, the exercise would affect workers at all levels and in all departments. In order to become profitable, the company managed by Bhavish Aggarwal wants to increase operational efficiency by cutting down on redundancies.
Employees from all departments will be impacted by the continuing exercise. The goal is to reduce costs in order to increase margins and profitability. According to additional sources, there is no deadline for finishing the exercise. In the second quarter of the current fiscal year, Ola Electric reported a net loss of INR 495 Cr (Q2 FY25). Although the year-over-year (YoY) loss decreased by 5.5%, it increased by 43% from INR 347 Cr in the first quarter of FY25. Ola Electric stated in its quarterly investor presentation that it would prioritise enhancing its bottom line through margin gain investments. Aggarwal, the business’s founder and CEO, stated during a post-earnings call that the company anticipates maintaining a steady operating expense level or possibly a modest decrease over the following two quarters. He said that as the business expands its distribution, revenue would continue to rise and operational costs will essentially remain the same or possibly decrease over the coming quarters.
Current Workforce and Financial Dynamics of Ola Electric
By the end of FY24, Ola Electric had more than 4,000 employees on the payroll, according to its red herring prospectus. In Q2 FY25, the company invested INR 139 Cr in its workforce, a 23% YoY and 13% quarter-over-quarter increase. It’s important to remember that in June of this year, it was reported that Ola Electric intended to reduce its employment by 400–500 employees in an effort to streamline its business before going public.
Additionally, within the past two years, it has carried out comparable reorganisation operations twice. The most recent exercise takes place during a period of months in which Ola Electrics’ stock has been steadily declining. On November 21, the company’s shares fell more than 12% from their listing price of INR 75.99 to a new all-time low of INR 66.85.
Ola’s Tug of War with Government’s Agencies
Growing complaints regarding the company’s e-scooters coincide with the stock’s downturn. The Central Consumer Protection Authority (CCPA) reportedly began a thorough inquiry into the company’s customer complaints last week. Ola Electric received a show-cause notice from the CCPA last month in response to user concerns.
After that, the business reported that 99.1% of the 10,644 complaints had been settled to the full satisfaction of the client. According to reports in November, the CCPA determined that Ola Electric’s assertions were untrue.
Ola Electric, India’s largest mobility platform and one of the top ride-hailing companies globally, is leveraging its strong foundation in urban mobility to champion sustainable transportation. In this StartupTalky article, we will explore the journey of Ola Electric from its inception to how it became a key player in India’s EV revolution and growing innovation with the creation of the Future Factory, the world’s largest and most sustainable two-wheeler manufacturing facility.
The below article portrays Ola Electric’s success story, its history, growth, funding, business model, hardships, challenges, competitors, and more.
Ola Electric is driving India’s emergence as the global hub for the electric vehicle (EV) revolution. As a pioneering EV company, they are working towards a brighter, safer, and greener future by building an ecosystem of products, services, and cutting-edge technology that will shape the next frontier of innovation. Their focus is deeply rooted in research and development, with expertise in design, engineering, and manufacturing that is dedicated to creating high-quality and accessible EVs.
From concept to production, Ola Electric is committed to owning and developing all core EV technologies and components. This includes everything from battery cells to electric vehicles, making them central to the future of sustainable transportation.
Ola Electric’s R&D efforts extend beyond India, with facilities in the UK and the US, including their Battery Innovation Centre, where they are developing cutting-edge cell and battery technologies that will lead the industry into the future.
Ola Electric – Industry
India is setting an ambitious goal to boost the share of electric vehicle (EV) sales by 2030, targeting 30% for private cars, 70% for commercial vehicles, 40% for buses, and a massive 80% for two-wheelers and three-wheelers. This translates into a bold objective of having 80 million EVs on the roads by the end of the decade, all driven by a push for complete domestic production under the ‘Make in India’ initiative.
Globally, the electric vehicle market was valued at $255.54 billion in 2023 and is expected to skyrocket to approximately $2,108.80 billion by 2033, growing at a strong compound annual growth rate (CAGR) of 23.42% from 2024 to 2033.
India Electric Vehicle Market Size, 2022 to 2032
In India, EV sales have been on the rise. By May 2024, EV sales surged by 20.88%, reaching 1.39 million units. In 2023, EV sales in India saw an even bigger leap, growing by 49.25% to 1.52 million units. Though still in its early stages, the Indian EV market is gaining significant momentum. According to Fortune Business Insights, the Indian EV market is projected to expand from $3.21 billion in 2022 to a whopping $113.99 billion by 2029, growing at a rapid CAGR of 66.52%.
This global shift toward EVs is creating exciting new opportunities for automotive suppliers, particularly in the Indian EV battery market, which is forecasted to grow from $6.77 billion in 2023 to $27.70 billion by 2028. This highlights the massive potential of India’s EV sector as it continues to evolve and expand.
Ola Electric – Founders and Team
Bhavish Aggarwal is the Co-founder and CEO of Ola Electric.
Bhavish Aggarwal – Co-founder and CEO, Ola Electric
Bhavish Aggarwal, born on August 28, 1985, is a prominent Indian entrepreneur known for his remarkable contributions to the tech and mobility sectors. Aggarwal hails from Ludhiana, Punjab, where he was born and raised. He completed his bachelor’s degree in computer engineering from the Indian Institute of Technology, Bombay, in 2008. Early in his career, he worked with Microsoft Research India as a research intern, later becoming an assistant researcher. However, it wasn’t long before he ventured into entrepreneurship. During his time at Microsoft, he filed two patents and published three papers in international journals, demonstrating his strong technical expertise.
In 2010, he co-founded his first major company, Ola Consumers (ANI Technologies Pvt.), which quickly emerged as a strong competitor to Uber in India. What started as a ride-hailing app soon expanded into other sectors, including online payments and food delivery, establishing Ola as a versatile and powerful player in India’s tech ecosystem.
Aggarwal also founded Ola Electric, a venture dedicated to revolutionizing the electric vehicle industry in India. Most recently, he launched OlaKrutrim, a groundbreaking artificial intelligence (AI) company, which became India’s first AI unicorn in 2024, reaching a valuation of $1 billion.
Recognized globally for his influence, Aggarwal was named in Time magazine’s list of the 100 Most Influential People in 2018. With a net worth of $2.3 billion, he stands as one of the youngest self-made billionaires in the world.
Bhavish Aggarwal’s journey from tech researcher to founder of multiple successful ventures showcases his vision for the future of technology and mobility, both in India and on the global stage.
Ola initially started as Olatrip.com, a small website venture offering weekend trip packages. Founded by two IIT Mumbai graduates, Bhavish Aggarwal, and Ankit Bhati, it began as a startup aimed at selling online tour packages. After working at Microsoft for nearly two years, Bhavish shifted his focus to entrepreneurship. However, a frustrating experience with a car rental service led Aggarwal to encounter a significant gap in the transportation industry, which drove him to innovate and disrupt the market. Henceforth, the duo began to rethink the car rental system entirely, sparking the creation of Ola Consumers (formerly Ola Cabs). What began as a solution to improve car rentals soon transformed into a ride-hailing giant, now simply known as Ola.
As the company grew, it expanded beyond ride-hailing, eventually venturing into the electric vehicle space.
In a press conference in Mumbai in late July, Bhavish reflected on the EV journey, saying, “Three years ago, when we launched our product, I believe that’s when the EV story began.”
These words encapsulate the meteoric rise of Ola Electric, which quickly became a key player in India’s electric vehicle revolution. At a time when India’s green infrastructure was still developing, Bhavish’s ambitious vision to create the world’s leading “urban mobility EV company” drove Ola Electric’s rapid growth. His bold vision, coupled with Ola Electric’s innovative strides, has placed both the company and Aggarwal at the forefront of India’s EV transformation, powering the country’s shift toward a sustainable, electric-powered future.
Ola Electric – Mission and Vision
Ola Electric’s mission is to significantly reduce emissions and lower fuel dependency by transitioning Ola’s cabs and other vehicles to electric, promoting mass electric mobility for a cleaner and greener future.
While Ola Electric envisions:
Bringing together brilliant young minds to drive innovation
Shaping the future of electric vehicles on a global scale
Excelling in technology and engineering
Creating industry-leading products that set new benchmarks for electric mobility
Ola Electric – Name, Tagline and Logo
Ola Electric Logo
Ola’s tagline “All-electric Future. From India. For the world.”, perfectly captures the company’s mission of leading the electric vehicle revolution from India with a global perspective.
The word “Ola”, symbolizes the ease and friendliness that the company aims to bring to its customers. Ola strives to make hailing a cab and using their services effortless and user-friendly. This reflects their commitment to providing seamless, customer-centric experiences while driving the future of electric mobility.
Ola Electric – Business Model
Ola Electric’s business model operates on three core platforms:
R&D and Technology: Ola Electric takes charge of designing and developing its own electric vehicle (EV) technologies and components. This includes key areas like software, electronics, motors, batteries, and advanced manufacturing techniques. Their focus on in-house innovation allows them to maintain control over the quality and functionality of their products.
Manufacturing and Supply Chain: Ola Electric boasts a flexible assembly line, supported by a shared supply chain and a vertically integrated manufacturing ecosystem. This integration streamlines their production process, ensuring efficiency and scalability, from the components to the final product.
D2C Omni-Channel Distribution: Ola Electric embraces a direct-to-consumer (D2C) approach for selling and servicing its EVs. This includes an online shopping platform, a robust charging network, and company-owned sales and service centers. By handling distribution and services directly, Ola Electric ensures a seamless and consistent customer experience.
Ola Electric generates revenue from the following streams:
Selling Scooters: The main revenue driver for Ola Electric is the sale of its electric scooters, including popular models like the S1 Pro, S1 Airand S1 X+.
Selling Accessories: Ola Electric also generates income through the sale of accessories such as spare parts, chargers, and other related products that complement its EV offerings.
Services: Ola Electric provides a range of services, including maintenance, after-sales support, and other customer services to ensure the long-term satisfaction of its users.
Ola Electric – Challenges Faced
Ola Electric, the electric vehicle (EV) company headquartered in Bengaluru, has experienced several operational challenges that have impacted its business. Here’s a closer look at these issues:
Ola Electric Layoff
On November 21, 2024, a source revealed that Ola Electric plans to lay off about 500 employees as part of a restructuring effort to improve the company’s profits.
This comes a few months after its sister company, Ola Consumer (formerly Ola Cabs), also underwent restructuring in April, affecting 10% of its staff. During that time, CEO Hemant Bakshi stepped down after less than a year, and CFO Karthik Gupta also left, impacting around 200 employees.
Service Issues
Enhancing Customer Trust Amid Increased Complaints: With rising complaints about software glitches and hardware issues, Ola Electric faces the challenge of restoring customer confidence. The Hyperservice campaign and quick-service guarantee are aimed at improving service reliability and customer experience. Aggarwal’s commitment to doubling service centers to 1,000 by December presents a logistical challenge. Expanding infrastructure while ensuring consistent service quality will require efficient resource management, staffing, and training. Introducing a one-day quick-service guarantee, with backup Ola S1 scooters for delays, requires robust operations management. Ola Electric must ensure availability and streamlined service processes to meet this promise consistently.
Minimizing Impact of Service Challenges on Sales: The decline in sales, linked to unresolved service issues, places pressure on Ola Electric to stabilize sales by improving its service reputation. The effectiveness of the Hyperservice campaign and prompt delivery of promises will be critical in reversing this trend. Offering cab coupons through Ola Care+ adds value for customers, but ensuring adequate customer retention and satisfaction may require further enhancements to Ola Care+ plans and personalized support.
Market Share Decline
Ola Electric’s market dominance has seen a downturn, with its market share dropping from 40.4% to 32.4% in recent months. This dip indicates increased competition and possibly waning customer confidence in the company’s products or services.
Market Competition
Ola Electric, once dominating India’s electric scooter market, saw a significant drop in sales in September, marking its lowest monthly sales figure at 23,965 units. This decline led to a market share dip of 27%, a sharp fall from its commanding 50% share in April. As Ola Electric’s sales slumped, competitors like TVS Motor and Bajaj Auto capitalized, gaining ground with the introduction of newer models and stronger service networks.
This shift suggests increasing competition and growing consumer expectations for product quality and after-sales service, areas where Ola may need to focus to regain its footing in the market. The decline also raises questions about its long-term dominance, as rivals continue to innovate and expand.
Technological Advancements
Ola Electric, once a fierce competitor to Uber in the ridesharing market, has now shifted its strategy towards tackling a new giant—Tesla. As Tesla eyes the Indian EV market, Ola Electric is aggressively aiming to undercut Tesla by offering more affordable electric vehicles.
Their contribution to India’s mobility landscape is primarily through two-wheeled mopeds, which have made Ola Electric the country’s largest manufacturer of electric scooters. Expanding beyond scooters, the company has intensified its focus on electrification. It is actively developing its lithium-ion battery technology and building Asia’s largest battery R&D facility. This cutting-edge center will drive Ola’s ambitions to lead the EV revolution in India by advancing battery tech and maintaining a competitive edge in the global market.
By investing heavily in these areas, Ola Electric is positioning itself to dominate India’s EV market and compete internationally, with innovations that could reshape the future of electric mobility.
Ola Electric – Funding and Investors
Ola Electric has raised a total of $1.7B in funding over 15 rounds. Ola Electric has been making headlines with a series of substantial investments:
Date
Name
Investors
Money Raised
June 11, 2024
Debt Financing
Alteria Capital
INR 1 billion
April 1, 2024
Debt Financing
EvolutionX Debt Capital
INR 4.1 billion
Oct 26, 2023
Debt Financing
SBI
$240 million
Oct 7, 2023
Series E
—
INR 11.9 billion
Sept 7, 2023
Private Equity Round
Tamasek Holdings
$140 million
May 22, 2023
Private Equity Round
—
INR 25 billion
Jan 24, 2022
Series D
—
INR 15 billion
Dec 8, 2021
Series C
Tamasek Holdings
$53 million
Sept 30,2021
Series C
Alpha Wave Global, Softbank
$200 million
July 12, 2021
Debt Financing
Bank of Baroda
INR 7.4 billion
March 12,2020
Series B
Pawan Munjal family Trust
$1.0 million
July 02, 2019
Series B
Pawan Munjal family Trust,Softbank, Hyundai Motor Company,Kia
$267.0 million
May 06, 2019
Series A
RNT AssociatesAngel Investor: Ratan N. Tata, Gaurav Deepak
$2.1 million
Feb 26, 2019
Series A
Tiger Global Management, RNT Associates, Sarin Family Trust, India Internet Fund, Z47.Angel Investor: Gaurav Deepak
$57.0 million
Ola Electric – Investments
Ola Electric has invested in StoreDot, details of which are as below:
Name
Total Equity
Current Stage
StoreDot
$226 million
Series D
Ola Electric – Mergers and Acquisitions
Ola Electric made a single acquisition in 2020.
Acquisition
Date
Price
Etergo
May 27, 2020
$23.1 million
Ola Electric – Growth
Ola Electric has experienced significant growth in revenue, deliveries, and market share in the Indian electric vehicle market, specifically in two-wheeled EVs:
Revenue Growth: In Q1 2024, Ola Electric’s revenue rose by 32.3%, reaching INR 1,644 crore, up from INR 1,243 crore in Q1 2023.
Deliveries: The company delivered over 1.2 lakh electric scooters in Q1 2024, a substantial increase from 70,575 units in the same period the previous year.
Market Share: As of September 2023, Ola Electric captured approximately 47% of India’s two-wheeler EV market, marking it as a dominant player.
IPO Success: Ola Electric’s listing on the National Stock Exchange (NSE) on August 9, 2024, resulted in a stock surge to ₹126.21 by August 23, a 66% increase.
Ola Electric Financials
FY23
FY24
Operating Revenue
INR 2631 crore
INR 5010 crore
Total Expenses
INR 3883 crore
INR 6277 crore
Cost of Material Consumed
INR 2505 crore
INR 4391 crore
Employee Benefit Expenses
INR 427 crore
INR 439 crore
Total Loss
INR -1472 crore
INR -1584 crore
Ola Electric Financials
Ola Electric’s revenue grew by 90% from FY23 to FY24, going from INR 2631 crore to INR 5010 crore. However, its total expenses also went up by about 62%, from INR 3883 crore to INR 6277 crore. The cost of materials increased by 75%, and employee expenses rose slightly by 3%. Despite the revenue growth, the company’s losses grew by 8%, from INR 1472 crore in FY23 to INR 1584 crore in FY24.
Looking ahead, Ola Electric anticipates that electric two-wheeler adoption will reach 41-56% by FY28. Its vertically integrated model spans R&D, technology development, manufacturing, sales, service, and charging infrastructure, with plans to incorporate its cell technology by Q1 FY26.
While Ola Electric achieved strong operational growth, challenges persist. Its net loss widened 8% in 2024. Nevertheless, Goldman Sachs forecasts that Ola Electric’s revenue will expand at 2.5 times the rate of its peers, with volume growth expected to outpace competitors fivefold over the next three years, setting the stage for potential EBITDA breakeven soon.
Ola Electric – Advertisements and Social Media Campaigns
Ola’s marketing strategy has strategically leveraged its brand recognition and environmental messaging to boost its presence in the electric vehicle market. Here’s an overview of Ola’s promotional approach and targeted advertising efforts:
Eco-Friendly Brand Messaging: Ola Electric has centered its marketing around the eco-conscious benefits of electric scooters, emphasizing reduced emissions and cost-effectiveness. This approach appeals to the growing environmental awareness among consumers, especially younger audiences who value sustainable choices.
Targeted Advertising Campaigns: To reach potential customers, Ola Electric has launched focused ad campaigns that highlight the financial and ecological advantages of EVs. By showcasing lower operating costs, emission reductions, and ease of use, the campaigns effectively communicate the benefits of transitioning to electric scooters.
Influencer and Celebrity Partnerships: Collaborations with influencers and celebrities have helped Ola amplify its brand message and reach a wider audience. These endorsements, targeted at a youth-centric market, enhance the brand’s appeal and establish a relatable connection with potential customers.
Youth-Centric Advertising Campaigns: Ola’s 2017 campaign, which targeted young, ethically-minded consumers, emphasized the importance of tackling urban challenges like traffic congestion and pollution. This campaign resonated with socially aware young people who are interested in creating positive change in their communities.
World Environment Day Campaign #FarakPadtaHai: Launched on June 5, 2017, this campaign encouraged nationwide awareness of ride-sharing as a means of reducing pollution and traffic. Through a TV commercial and other offline activities, Ola fostered a sense of responsibility towards the environment, further solidifying its eco-friendly brand positioning.
The Shared Pass Initiative: Ola introduced a shared pass at an affordable rate of ₹1 to promote shared travel, overcoming initial reluctance among users about ride-sharing with strangers. This campaign successfully increased shared ridership, reflecting Ola’s ability to engage users and drive the adoption of shared transportation solutions.
Ola Electric’s achievements and recognition reflect its innovation and leadership in the electric vehicle industry.
IHS Markit Innovation Award (CES): Ola Electric received this award at CES for its groundbreaking design, performance, and smart features, setting new standards for electric scooters in India and globally.
German Design Award: Ola Electric was recognized for the sleek and innovative design of its scooters, reinforcing its appeal in both aesthetics and functionality.
Advanced Chemistry Cell (ACC) Battery Storage Capacity Allocation: Awarded in March 2022 under India’s Production Linked Incentive (PLI) scheme, Ola Electric received a 20GWh capacity allocation for ACC battery storage, entitling it to five years of incentives to advance EV battery development.
Electric Scooter of the Year – Car&Bike Awards 2023: The Ola S1 scooter won this category, prevailing over competitors like the TVS iQube S, Vida V1 Pro, and Okinawa Okhi-90 for its excellence in performance and design.
PLI-Automotive Certificate from ICAT: In March 2024, the International Centre for Automotive Technology (ICAT) awarded Ola Electric the PLI-Automotive Certificate, recognizing its pioneering contributions to electric mobility under the PLI scheme.
WomenIN Leadership Award at UK-India Awards 2024: Ola Electric was honored at the UK-India Awards for its commitment to diversity and leadership in the EV sector, emphasizing its role in promoting inclusivity within the industry.
These awards highlight Ola Electric’s dedication to innovation, design excellence, and sustainable mobility, positioning the company as a leader in the electric vehicle industry.
Ola Electric – Competitors
Ola Electric faces competition from several prominent players in India’s rapidly growing electric vehicle (EV) sector, particularly in the two-wheeler segment:
Ola Electric has positioned itself at the forefront of India’s electric vehicle (EV) transformation, with ambitions that extend beyond two-wheelers to broader electrification and energy independence. By leveraging new funding and strategic partnerships, Ola is scaling its operations and product lineup:
Recent Funding and Expansion
October 2023 Funding: Ola Electric secured INR 3,200 crores (~USD 385 million) from investors like Temasek and project debt from the State Bank of India. These funds will drive expansion into new product lines and support the setup of India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
Gigafactory and Lithium-Ion Cell Manufacturing: As the first Indian EV company selected for the government’s Advanced Chemistry Cell (ACC) Production-Linked Incentive (PLI) scheme, Ola is building a pioneering lithium-ion battery cell manufacturing unit, with an eventual target capacity of 100 GWh, significantly boosting India’s local EV supply chain.
Product Portfolio Expansion
Scooter Range: Ola’s recent Gen-2 platform has allowed for an expanded lineup of electric scooters, including the S1 Pro, S1 Air, S1X+, S1X (3kWh)and S1X (2kWh), covering a broad range of price points from INR 89,999 to INR 1,47,499. This lineup enhances accessibility for various consumer segments.
Upcoming Electric Motorcycles: Ola has announced four models—Diamondhead, Adventure, Roadster, and Cruiser—designed to meet different consumer preferences and expected to launch by the end of 2024. These motorcycles reflect Ola’s commitment to style and advanced engineering in the EV segment.
Vision for India’s EV Ecosystem
Ola Electric aims to lead India toward energy self-sufficiency by strengthening domestic manufacturing of critical EV components and creating a robust battery supply chain. Through its diversified portfolio and pioneering facilities, Ola Electric is setting a high standard for innovation and scalability in India’s EV market, positioning the country as a central hub for future-ready technology and sustainable energy solutions.
FAQs
Who is the founder of Ola Electric?
Bhavish Aggarwal is the co-founder and CEO of Ola Electric.
What does Ola Electric do?
Ola Electric makes electric scooters and works on other electric vehicle technologies to reduce pollution and promote clean energy.
When was Ola Electric founded?
Headquartered in Bengaluru, Ola Electric was founded in 2017.
Who are the competitors of Ola Electric?
The main competitors of Ola Electric include Ather Energy, Hero Electric, Bounce Infinity, Ampere Vehicles, Greaves Electric Mobility, and more.
The Central Consumer Protection Authority (CCPA) has ordered a thorough investigation into suspected “deficiencies” in Ola Electric’s services and products, particularly with regard to its scooters, indicating further difficulty for the company. This action comes after Ola addressed previous regulatory notifications about outstanding customer complaints.
Nidhi Khare, the consumer affairs secretary, announced on 14 November 2024 that the Bureau of Indian Standards (BIS) has been instructed by the top consumer rights regulator to confirm the company’s statements about how it resolves customer complaints.
The investigation was formally started on November 6, and the BIS director general, acting as the ex-officio Director General of Investigation, has been given 15 days to provide a detailed report.
Plethora of Complaints Triggered the Investigation
The National Consumer Helpline (NCH) received 10,644 complaints against Ola Electric between September 2023 and August 2024, which sparked the investigation. According to a response from Ola Electric dated October 21, 99.1% of consumers were satisfied with the company’s complaint resolution procedure. A sample of consumers was then contacted by the CCPA to get their opinions on grievance redressal.
According to an investigative official, 130 of the 287 customers that the NCH call agents dealt with were dissatisfied with the company’s answer (79.2%). It was merely a sample test to confirm Ola’s claims. Their claim of 99% satisfaction ought to have been mirrored in the cross-verification as well.
Customers are Not Satisfied With the Resolution
According to numerous clients, problems continued even after complaints were resolved, and some cases were closed too soon without being satisfactorily resolved, the official continued. Ola Electric insisted in a regulatory filing that it has settled 99.1% of the CCPA’s objections. The company also stated that it had submitted comprehensive responses to a show-cause notice issued by the CCPA on 7 October, which detailed alleged consumer rights violations, misleading advertising, and abusive trade practices.
Who is BIS?
The Bureau of Indian Standards (BIS) is India’s national standards body. BIS is in charge of the smooth operation of the standardisation, marking, and quality certification of goods processes as well as any related or incidental issues.
The national economy has benefited from BIS’s primary functions of standardisation and conformance assessment by supplying safe, dependable, and high-quality products; reducing consumer health risks; safeguarding the environment; encouraging imports and exports as alternatives; managing the overabundance of varieties, etc. In addition to helping consumers and businesses, BIS’s standards and certification programme also assist a number of public policies, including those pertaining to building and construction, consumer protection, food safety, product safety, and the environment.
Through its standardisation and certification efforts, BIS has recently sought to directly address a number of national priorities as well as other government projects, including Digital India, Make in India, Swacch Bharat Abhiyan, and ease of doing business. When developing standards, BIS keeps up with the latest developments in technology, climate change, energy and environmental conservation, health and safety conditions, and trade facilitation.
After a customer’s e-scooter was discovered to be defective, the District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, ordered Ola Electric to reimburse INR 1,63,986 with interest and provide INR 10,000 in compensation. Following persistent issues with his Ola S1 Pro since its delivery in June 2022, Hyderabad counsel K Sunil Chowdary lodged a complaint.
The scooter’s charger was defective from the beginning, and unsolved battery problems have made it inoperable since August 2023, even with an extended warranty and Ola Care Plan. Despite raising these issues several times with the company, Ola Electric was unable to provide a satisfactory result to the customer.
Ola Electric Failed To Respond To Customer’s Legal Notice
Ola Electric did not show up for or reply to hearings in response to Chowdary’s legal notification from October 2023. Ola’s failure to fix the scooter was determined by the commission to be a service deficiency. Within 45 days, the refund and the 9% interest that has accumulated since August 2023 must be paid; otherwise, the interest rate would rise to 12% annually.
When Ola Electric Mobility’s three-month lock-in period ended earlier in the day on November 5, the company’s shares were down more than 7%.
Ola Claims that 99% of Customer Complaints are Resolved
On the other hand, contradicting from aforementioned development, Ola Electric last month made a statement mentioning that out of the 10,644 customer complaints it has received thus far, 99.91% have been handled and resolved successfully. In a regulatory filing on September 21, 2024, the manufacturer of electric two-wheelers notified the Central Consumer Protection Authority (CCPA) of the latest developments on long-pending customers’ issues. The CCPA issued a show-cause notice to the Bengaluru-based company earlier this month in response to subpar conditions at its service centres throughout the nation.
The Department of Consumer Affairs’ National Consumer Helpline reports that between September 1, 2023, and August 30, 2024, 10,644 complaints were filed against Ola e-scooters. Of these, 1,899 deal with new vehicle delivery delays, 3,389 with servicing delays, and 1,459 with unmet promises of services.
In a regulatory filing, Ola Electric stated that it wants to be clear that it has a robust framework in place to address any complaints regarding its electric two-wheeler. The company would like to emphasise that, in fact, 99.1% of the 10,644 complaints it received from the CCPA were resolved to the complete satisfaction of the customer because of Ola Electric’s robust redressal mechanism.
This calculating approach was a response to growing customer dissatisfaction, as seen by the 80,000 customer complaints that went viral on social media each month, along with the stories and pictures of Ola Electric vehicles soaking dust at repair facilities. The outcry attracted the attention of both lawmakers and consumer watchdogs.
The Central Consumer Protection Authority (CCPA) had sent Ola Electric a show-cause notice, citing potential violations of consumer rights, misleading advertising, and unfair business practices. The notification identified over 10,000 unresolved after-sales support issues.
According to Ola Electric, out of the 10,644 customer complaints it has received thus far, 99.91% have been handled and resolved successfully. In a regulatory filing on September 21, 2024, the manufacturer of electric two-wheelers notified the Central Consumer Protection Authority (CCPA) of the latest developments on long-pending customers’ issues. The CCPA issued a show-cause notice to the Bengaluru-based company earlier this month in response to subpar conditions at its service centres throughout the nation.
The Department of Consumer Affairs’ National Consumer Helpline reports that between September 1, 2023, and August 30, 2024, 10,644 complaints were filed against Ola e-scooters. Of these, 1,899 deal with new vehicle delivery delays, 3,389 with servicing delays, and 1,459 with unmet promises of services.
The Claims Made by Ola in its Filing
Ola Electric said in a regulatory filing that it would like to make it clear that it has a strong system in place to handle concerns about its electric two-wheeler. In reality, the company would like to highlight that, thanks to Ola Electric’s strong redressal system, 99.1% of the 10,644 complaints it received from the CCPA were resolved to the full satisfaction of the consumer.
A notice from the Automotive Research Association of India (ARAI) was also addressed by the company, which is run by Bhavish Aggarwal. Prior to the company’s BOSS sale, the notification raised concerns about the price plan of its S1 X 2 kWh scooters. Ola Electric gave clients an invoice dated October 6 that showed a INR 5,000 discount and stated that it had not changed the prices during the sale. Additionally, it provided a screenshot taken from its app, verifying that the scooter’s cost had not altered.
What Exactly Happened Earlier?
With as many as 80,000 customer complaints each month going viral on social media and stories of Ola Electric vehicles collecting dust at repair locations, this calculated approach is a response to growing customer unhappiness. Both lawmakers and consumer watchdogs were drawn to the outcry.
Ola Electric was recently served with a show-cause notice by the Central Consumer Protection Authority (CCPA), which included possible abuses of consumer rights, deceptive advertising, and unfair business practices. More than 10,000 outstanding after-sales service concerns were highlighted in the notification.
Ola Electric has made plans to grow its network of service centres in response to these problems, with the goal of increasing the number from 400 to 1,000 by the end of the year. Industry experts caution that expanding the number of centres alone might not address the main problem. An analyst said, “Instead of growing, the company should concentrate on enhancing the quality of current service stations.”
India witnessed a drastic change within a very short period recently. You can now order groceries from the internet, food that reaches your doorstep, and also reach the farthest corner of your city without pressing a gas pedal.
OLA Cabs now Ola Consumer, co-founded by Bhavish Aggarwal has helped a number of its clients solve a major issue of standing in queue, sometimes for hours, or getting ignored by Autowalas in India. Moreover, it has made travel safe for women at any hour of the day.
The photography enthusiast had a big dream, to serve Indians with a secure and reliable cab service. All that became possible with the efforts he made at a young age. Aggarwal is also the co-founder and CEO of OLA and the sole founder of OLA Electric.
The successful cab service was first experimented with on the streets of Delhi. Bhavish Aggarwal founded OLA along with Ankit Bhati and the rest is history.
Let’s know Bhavish Aggarwal and his education, personal life, awards, some unknown facts, and more through this article.
Bhavish Aggarwal – Biography
Name
Bhavish Aggarwal
Birthplace
Ludhiana, Punjab
Born
28 August 1985
Nationality
Indian
Education
B.Tech (IIT Bombay)
Position
Co-founder and CEO of OLA Cabs, Founder of OLA Electric
Bhavish Aggarwal often confused with a Marwadi is a Punjabi, who was born and brought up in Ludhiana. He is part of a loving family who supported his childhood just as every family does. Aggarwal completed his UG in 2008 from the Indian Institute of Technology, Bombay in computer science and engineering.
During the early days of his career, Aggarwal worked for Microsoft which turned out to be two of his glorious years.
Bhavish Aggarwal – Career
The mind behind OLA’s success was a research intern at Microsoft in the year 2007. Then a year later, Aggarwal was absorbed by the company to be the Assistant Researcher. In this position, he spent more than two years at Microsoft.
At Microsoft, Bhavish Aggarwal filed two patents and published three papers in international journals, however, he left Microsoft in July 2010. Not so further shortly, in September of the same year, Bhavish came up with the planning of OLA. By January 2011 he along with Ankit Bhati founded OLA Cabs now OLA Consumer.
Ola Founder Bhavish Aggarwal On ‘Krutrim’: Willing To Invest Whatever It Takes To Build AI For India
Bhavish Aggarwal – Personal Life | Family
Bhavish isn’t the only child of his parents. His father Naresh Aggarwal is an orthopedic surgeon, and his mother Usha Aggarwal is a pathologist. They have another son Ankush Aggarwal. Ankush is the founder of Avail Finance an online money lending platform for which Bhavish has been an angel investor.
Bhavish Aggarwal married his girlfriend Rajalakshmi in 2014. The Tamil-origin girlfriend and Bhavish first met in Bangalore in the year 2007 and have been dating for nearly 6 years. There is no information about the couple having any kids as of yet.
Bhavish Aggarwal – OLA Consumer
Every ease today we feel is possible because of a horrible event that pushed Aggarwal to establish OLA.
While traveling from Bangalore to Bandipur in a car, the driver stopped and started negotiating the previously fixed deal and travel fare with Aggarwal. Worried and annoyed, the founder of OLA Electric was stranded in the middle of nowhere. And that is how he came up with the inspiration behind the magnificent works of OLA.
Following the event, in 2010, Bhavish established Olatrip.com. This was known as a trip-planning company at first. A year later, looking at the growing demand for cab services Aggarwal and Ankit Bhati launched Olacabs now OLA Consumer. This time it was a taxi aggregation platform.
Early days of Ola
In the initial years, the cab booking firm had its users booking cabs via phone calls. Soon, in June 2012, Olacabs launched a mobile app. And by 2015, OLA had the biggest market share.
Today OLA has its range of Electric Vehicles, which was again founded by Bhavish Aggarwal, a man with big dreams.
OLA Financials (FY20-FY22)
Bhavish Aggarwal – Journey So Far!
Bhavish had to face several hurdles while introducing OLA to the Indian audience. Not just once, but every time he came up with something new or aimed for a new market, there had been struggles.
In the initial years, local big shots such as The Radio Traffic Services and FastTrack were tough to compete with OLA, but that didn’t stop Bhavish from aiming higher. These obstacles encouraged Aggarwal to think differently and come up with something odd yet problem-solving. This is when OLA started hiring drivers who had an All India Permit, and launched its inter-city travel feature.
Similarly, Bhavish kept on introducing newer features in OLA such as OLA Mini, and OLA Auto, which went on to win awards.
Next is his venture, Krutrim AI which recently raised $50 million at a valuation of $1 billion. With this raise, Krutrim AI became India’s first-ever startup unicorn of 2024. Not just that but Krutrim AI is also the first homegrown artificial intelligence firm.
With being an angel investor in his brother’s firm Avail Finance, Bhavish has even invested in several other firms over the years.
Company
Date
Industry
O’ Be
1 May 2022
Beverages
Karkinos
12 Feb 2022
Clinics/Outpatient Services
O’ Be
23 August 2021
Beverages
Avail Finance
28 June 2019
Other Commercial Banks
Avail Finance
14 March 2018
Other Commercial Banks
Avail Finance
1 Feb 2017
Other Commercial Banks
OfBusiness
13 December 2016
Media and Information Services (B2B)
SuperSuit
8 June 2016
Electronics (B2C)
Tork Motors
18 April 2016
Automotive
Hashlearn
23 March 2016
Educational Software
Bhavish Aggarwal – Controversy
OLA Cabs has most of its time been into controversy, sometimes due to the protests by Auto Walas or due to strikes by its drivers over less percentage of share. However, in 2022 it was reported that Aggarwal presented ruthless behavior that had upset the employees as well as board members. In this report, several OLA employees stated that inside OLA Electric, the culture has turned hostile.
Earlier in October 2024, Ola CEO Bhavish Aggarwal hit back on X at Kunal Kamra for criticizing how Ola scooters were kept outside a dealership. Aggarwal sarcastically offered to pay Kamra to help with the company’s issues, or told him to “shut up” and let Ola handle real customer problems. This sparked a series of posts, with their feud escalating and drawing attention from netizens, who watched and commented as it got more intense. Comedian Kunal Kamra criticized Ola Electric again, calling it a “public issue” on October 21. He listed three reasons: the company is fooling the public, subsidized by public money, and is publicly listed. The debate heated up when Kamra mocked Ola for allegedly hiring bouncers at its service centers, after user R.J. Kashyap posted about it. Kamra sarcastically called this situation “unique.” Ola CEO Bhavish Aggarwal responded aggressively, leading to backlash from netizens, who called him rude, arrogant, and ignorant in his replies. Many supported Kamra in the ongoing exchange.
Bhavish Aggarwal along with his company OLA received South Asia’s mBillionth award in 2013
In the same year, he and his company won Best Startup of The Year, which was presented by IAMAI
In 2017, he was bestowed with the ET Awards: Best and the Brightest by The Economic Times
Bhavish Aggarwal – Unknown Facts
Bhavish Aggarwal is regarded as the youngest and the wealthiest entrepreneur in India, but with all of that, he even has a few more sweet little passions.
Underneath the tight corporate suit, he likes to ride his bicycle and play squash. He is also into photography and is known to maintain a popular photoblog.
Bhavish Aggarwal – Top Quotes
💡
If we launch a new product, we have to time it right. It’s not about how soon you can do it but how well we can do it.
FAQs
Who is Bhavish Aggarwal?
39 years old, Bhavish Aggarwal is the CEO and co-founder of OLA Consumer.
Who are Bhavish Aggarwal Parents?
The parents of Bhavish Aggarwal are Naresh and Usha Aggarwal.
What is Bhavish Aggarwal education?
Bhavish Aggarwal completed his B.Tech in 2008 from the Indian Institute of Technology, Bombay in computer science and engineering.
What is Bhavish Aggarwal age?
Bhavish Aggarwal was born on 28th August 1985. He is 39 years old.
Who is Bhavish Aggarwal married to?
Bhavish Aggarwal is married to Rajalakshmi Aggarwal.
Who are Bhavish Aggarwal children?
As per the reports, Bhavish Aggarwal has 2 kids, a son and a daughter.
Does Bhavish Aggarwal own another firm?
Yes, Bhavish Aggarwal has also founded OLA Electric.
What is OLA about?
OLA is India’s largest mobility platform and one of the world’s largest ride-hailing companies, serving 250+ cities across India, Australia, New Zealand, and the UK.
Leading player in the electric two-wheeler market, Ola Electric, managed by Bhavish Aggarwal, has engaged EY India to manage its “service transformation” in the face of growing customer complaints, falling sales, and worsening after-sales service issues. The decision was made in response to growing demand on the business to enhance customer service.
This multinational consulting business, EY, is anticipated to help the manufacturer of electric two-wheelers in a number of service-related capacities. According to sources cited by a media house, the focus will be on optimising inventory and spare part management as well as streamlining corporate operations.
An Interim Three-Month Task
A few weeks ago, Ola Electric hired about a dozen EY professionals for a three-month initiative. The report stated that the relationship might be extended based on the outcomes. Helping Ola enhance its procedures, inventory control, and local service availability is the aim, especially in regions with robust sales but inadequate service assistance. The most significant obstacle has been finding replacement components and service staff.
According to the report, Bhavish Aggarwal is in charge of the entire process, indicating how important it is to the business plan.
Ola’s Reaction to Growing Criticism
With as many as 80,000 customer complaints each month going viral on social media and stories of Ola Electric vehicles collecting dust at repair locations, this calculated approach is a response to growing customer unhappiness. Both lawmakers and consumer watchdogs were drawn to the outcry.
Ola Electric was recently served with a show-cause notice by the Central Consumer Protection Authority (CCPA), which included possible abuses of consumer rights, deceptive advertising, and unfair business practices. More than 10,000 outstanding after-sales service concerns were highlighted in the notification. Ola Electric has made plans to grow its network of service centres in response to these problems, with the goal of increasing the number from 400 to 1,000 by the end of the year. Industry experts caution that expanding the number of centres alone might not address the main problem. An analyst said, “Instead of growing, the company should concentrate on enhancing the quality of current service stations.”
Ola’s Internal Issues and Diminishing Sales
A spike in customer complaints about hardware flaws, software bugs, and after-sale service has been difficult for Ola Electric to handle. Sales and market share have decreased as a result in recent months. With three heads of service quitting in the last two months, the company’s high turnover rate worsens these problems. Ola Electric has had a brief increase in sales this month despite these setbacks because of extensive discounting. Based on statistics retrieved from the Vahan portal, the business had registered over 15,672 vehicles as of October 14, increasing its market share to 34%.
Although this gives the manufacturer of electric vehicles some respite, analysts have cautioned that the surge is mostly due to the holiday season and substantial discounts, which may not be long-term viable. Furthermore, according to market analysts, this month’s sales numbers are still below those of previous months this year.
Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.
In an exchange filing, Ola said that the CCPA has given the company 15 days to reply to the show-cause notice. The business promised to reply to the notification and provide the necessary documentation within the allotted period.
The CCPA has issued a show-cause notice for suspected unfair trading practices, deceptive advertising, and violations of consumer rights. The company will respond to the CCPA’s show cause notice. At the moment, the Show Cause Notice has no bearing on the business’s operations, finances, or other activities. Additionally, the management of the company stated in an exchange filing that the notice did not impose any penalties or monetary fines.
One of India’s leading EV companies, Ola Electric, is committed to building vertically integrated technology and production capacity for EVs and their parts, such as battery cells. At the Ola Future Factory, it manufactures EVs as well as necessary parts like motors, battery packs, and vehicle chassis.
Company’s Recent Market Performance
The Indian electric two-wheeler company recorded its lowest monthly sales of the year in September as its dominance faded due to new competition from smaller firms and issues with the servicing network. In September 2024, Ola Electric sold 23,965 units, marking the second consecutive month that the company’s month-over-month (M-o-M) sales have decreased. According to research, its market share dropped from above 50% in April to 27% in September for five consecutive months due to its declining M-o-M sales.
Bajaj Auto and TVS Motor both reported increases in their market shares for five consecutive months during this time, closing the sales gap.
Ola’s declining sales and frequently undercutting prices present additional difficulties for the business’s financial performance. It hasn’t made any money yet.
Kamra and Aggarwal Locking Horns on X
Now, the issue has gone to X, where stand-up comedian Kunal Kamra has questioned Ola’s service by using a tweet from Ola CEO Bhavish Aggarwal that included an image of the Ola Gigafactory.
In the tweet, Kamra asked if Indian customers had a voice. Are they deserving of this? Is this how Indians will adopt EVs? Two-wheelers are the livelihood of many daily wage labourers. If you have a problem with OLA Electric, please share your tale here, tagging everyone. The result was a prolonged verbal sparring match between comedian Kunal Kamra and Ola CEO Bhavish Aggarwal. Kamra didn’t stop here; he went further and tagged Nitin Gadkari, Union Minister for Road Transport & Highways, Government of India, in the tweet.
Nitin Konde
