Image Source: Business Standard
In a notable development in India’s electric vehicle (EV) sector, SoftBank Group Corp. has reduced its stake in Ola Electric Mobility Ltd. from 17.83% to 15.68%, according to a recent regulatory filing. The move comes just over a year after Ola Electric’s blockbuster market debut and amid a period of heightened volatility for the EV maker’s stock.
While the Japanese investment giant remains one of Ola Electric’s largest shareholders, the stake cut signals a measured recalibration of its exposure to the company. This reduction is consistent with earlier remarks from SoftBank’s India and EMEA managing partner, Sumer Juneja, who described the firm’s approach to Ola Electric as a “thoughtful, gradual exit” dependent on the company’s performance and broader market conditions.
A Gradual Shift, Not a Sudden Exit
SoftBank’s decision to pare down its holding is not being framed as a loss of confidence. In fact, Juneja has previously emphasised that the investor is “in no hurry to exit” Ola Electric, citing the company’s pioneering role in India’s EV revolution and its potential to capture significant market share over the next decade.
The Japanese investor first backed Ola Electric with an investment exceeding ₹2,800 crore, betting on founder Bhavish Aggarwal’s vision to disrupt India’s two-wheeler market with affordable, high-performance electric scooters. Ola Electric’s IPO in 2024 valued the company at around $4.8 billion, cementing its status as one of India’s most prominent EV startups.
Market Context: A Bumpy Ride for Ola Electric
The stake reduction comes at a time when Ola Electric has faced a challenging year in the public markets. Its share price has seen significant swings, at one point dipping below its IPO price of ₹76 and hitting record lows of around ₹70.
Operationally, the company has also encountered headwinds. According to industry data, Ola Electric’s market share in the electric two-wheeler segment dropped to roughly 18–20% in May 2025, down from 22.1% in April and a sharp fall from nearly 50% a year earlier. This decline has been attributed to intensifying competition, reduced government subsidies, and production bottlenecks.
Financially, Ola Electric’s losses more than doubled in the quarter ended March 2025 as vehicle deliveries slowed and revenue declined. However, there have been signs of recovery: in the second quarter, net losses narrowed to ₹495 crore while revenue from operations rose 39% year-on-year to ₹1,214 crore2.
SoftBank’s EV Bet: Long-Term Optimism
Despite these fluctuations, SoftBank remains optimistic about the long-term prospects of India’s EV market. Juneja has projected that EV penetration in the country’s massive two-wheeler segment could reach 30–40% over the next 5–10 years, driven by falling battery costs, improved charging infrastructure, and consumer economics that increasingly favour electric mobility.
Ola Electric, for its part, has been working to strengthen its position. The company recently secured PLI (Production-Linked Incentive) certification for its Gen 3 scooter portfolio, which is expected to boost profitability from Q2 FY26 onwards. It has also rolled out MoveOS 5, its largest software upgrade to date, aimed at enhancing user experience and vehicle performance.
Investor Sentiment and Strategic Implications
SoftBank’s partial exit could be interpreted in multiple ways. For some market watchers, it’s a prudent portfolio rebalancing move—locking in some gains while retaining a significant stake in a company still seen as a category leader. For others, it’s a signal that even marquee investors are hedging their bets in a sector undergoing rapid transformation.
The timing is also noteworthy. With global capital markets still navigating post-pandemic uncertainties, many large funds are reassessing their exposure to high-growth but high-volatility sectors like EVs. SoftBank’s Vision Fund, in particular, has been under pressure to deliver returns after a series of mixed bets in tech and mobility.
The Road Ahead
For Ola Electric, the focus now will be on regaining market share, improving operational efficiency, and delivering consistent financial performance to reassure both retail and institutional investors. The company’s ability to execute on its product roadmap—while navigating policy shifts and competitive pressures—will be critical in determining whether SoftBank’s gradual exit remains just that, or accelerates in the years ahead.
As India’s EV landscape matures, the interplay between ambitious startups like Ola Electric and heavyweight investors like SoftBank will continue to shape the sector’s trajectory. For now, the message from SoftBank is clear: it’s still in the ride, but with a slightly lighter grip on the handlebars.
Sources: CNBC-TV18, Benzinga, Ola Electric Investor Relations
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