Ola Electric’s early backer Z47 relinquishes stake in EV-maker
The EV-maker has been struggling with declining market share with its share price seeing a gradual decline post its second quarter results. On Friday, its share price hit a 52-week low of Rs 34.73 apiece.
Z47, formerly known as Matrix Partners India, has fully exited its investment in electric vehicle manufacturer Ola Electric, according to regulatory documents filed with stock exchanges.
The venture capital firm was one of the early backers of the company, having co-led a funding round into Ola back in 2019 along with Tiger Global.
According to filings, the VC firm has been slashing its stake in the company since the three months ended December 31, 2024. As of Q1 FY26, the firm held a 1.93% stake in Ola, down from 2.79% after it had listed on stock exchanges in August last year.
According to an Economic Times report citing a source familiar with the matter, Z47 realised 7-10X returns on its investment of Rs 107 crore, following its complete exit.
The investment exit comes at a time when the Bhavish Aggarwal-led company is struggling to maintain its market share amidst rising competition from peers like TVS Motor, Bajaj Auto, and Ather Energy. The Roadster-maker’s market share in November slipped to fourth position, below Hero MotoCorp.
Notably, the company was the biggest EV manufacturer, in terms of sales as of November last year, having sold 29,322 units of its scooters and capturing about 24.5% of the total E2W market.
A year later, the company managed to sell only 8,254 units and held 7.4% market share. The slimming sales has also plunged its top-line growth.
During the three months ended September 30, 2025, the company reported a 43.1% decline in revenue from operations to Rs 690 crore compared to Rs 1,214 crore in the year-ago period.
However, despite the revenue slump, the company inched closer to its path to profitability, with a 15.5% decline in net losses for the period compared with the year-ago period. Ola Electric reported a net loss of Rs 418 crore during the second quarter compared with Rs 495 crore in Q2 FY25.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director at Ola Electric.)
Edited by Affirunisa Kankudti