Ola Electric founder topped up collateral as shares tumbled

Bhavish Aggarwal, founder and chief executive officer of Ola Electric Mobility Ltd., paid about ₹20 crore ($2.3 million) in cash to top up collateral for borrowings against shares, according to people with knowledge of the matter, as the stock slid on poor sales. 

Aggarwal had raised ₹250 crore for his generative AI venture Krutrim Data Center Pvt. by pledging Ola Electric equity and he voluntarily put in the extra money since March as the shares dipped below ₹50 each, the people said, asking not to be identified as the details are private. No margin calls were triggered and the value of the stock collateral is more than twice the borrowed amount, they added.

Investors are closely watching SoftBank Group Corp-backed Ola Electric, whose shares have fallen about 35 per cent since it listed at ₹76 in August. Hyundai Motor Co. and Kia Corp. cut their stakes in the company in recent days after the Indian e-scooter firm said quarterly losses have more than doubled amid regulatory and governance concerns.

Aggarwal has pledged or encumbered about 8 per cent of his 30 per cent Ola Electric stake, according to exchange data. Avendus Group, InCred Alternative Investments Pvt. and Modulus Alternatives Investment Managers had lent him the money in exchange for bonds issued by Krutrim, carrying coupon rates of around 14.9%-15.9% and backed by Ola Electric shares, according to data published by Bloomberg and one of the people. 

Avendus and InCred declined to comment. Modulus didn’t immediately respond to Bloomberg’s email seeking comment. A representative for Ola Electric said all founder pledges have been disclosed and there are no more material developments; it declined to comment on what it said were “speculative” reports. 

As the value of the Ola Electric shares dipped, Aggarwal pre-funded 3-4 months of accrued interest instead of topping up the collateral with more shares, one of the people said. Aggarwal earned some ₹280 crore having sold a portion of his Ola Electric stake in the IPO.

Even though Ola Electric was trading at almost ₹50 on Thursday, the top up cash won’t be returned to Aggarwal given the ongoing concerns about the listed company, one of the people said. The scooter-maker’s market share has shrunk to 18 per cent in May from over 48 per cent last year.

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Published on June 5, 2025