Ola Electric Recovery & Investor Shifts: Key Business Trends
Workers inspecting electric scooters on an assembly line at the Ola Electric factory.
Key Highlights
Ola Electric’s recovery strategy, Libas’ expansion plans, and changing investor focus on domestic LPs. Key business and startup trends analyzed.
Ola Electric is showing promising signs of a recovery following months of declining market share and service issues. The electric vehicle maker is attempting a comeback through in-house battery technology and significant price reductions, potentially signaling a turnaround led by Bhavish Aggarwal.
The company’s stock on the has seen a surge of over 56% in the past month, driven by several factors, including the unveiling of its in-house 46100 Lithium Iron Phosphate cell designed for mobility and energy storage. Ola Electric also secured PLI certification for Roadster X+ 4.5 kWh, which strengthens its eligibility for government incentives, alongside improved sales and reduced prices on key products.
By integrating cell manufacturing in-house and expanding its Gigafactory capacity to 6 GWh, Ola Electric is making a substantial push for vertical integration. This move has enabled the company to lower the prices of its products, passing cost benefits to consumers. As a result, the company’s registrations increased by 139% month-over-month, reaching 9,496 units in March.
In addition to hardware improvements, the EV maker is focused on enhancing its service reputation, claiming a same-day resolution rate of over 80% for service-related issues. The company is also introducing extended warranties up to eight years and assured buyback schemes to improve customer relations with its base of 10 Lakh customers.
Investors are reacting positively to the company’s turnaround efforts, with shares surging 28% on the BSE in the past week. The stock closed yesterday with an upper circuit and a market capitalization of approximately ₹16,029 Cr. However, the stock is still trading at ₹36.34, below its price of ₹76.
In other business news, Sidhant Keshwani joined his family’s textile business in 2014, India’s ethnic wear market was still fragmented, trust-driven and largely offline. Libas broke in with a simple proposition – affordable, functional Indian workwear for women sold online.
Instead of chasing growth-at-all-costs, Libas stayed bootstrapped for nearly a decade and treated profitability as a core principle. This discipline shaped everything from marketing to expansion, helping the brand cross roughly ₹600 Cr in revenue in FY25.
With ARR crossing ₹1,000 Cr in FY26, Libas is now pushing into quick commerce, fragrances, beauty and even the UAE. But the next phase looks harder and will demand tighter supply chains, more working capital and sharper execution.
Amid geopolitical volatility and funding challenges, Indian venture capitalists are increasingly relying on domestic limited partners (LPs). According to an Inc42 survey, 74% of investors prefer Indian-origin LPs for the next funding cycle.
This shift is driven by the predictability of homegrown LPs, who are more attuned to the realities of the domestic startup market and less likely to compare Indian returns to those of more mature ecosystems such as the US and Europe. Much of the new domestic investment is coming from family offices and HNIs, which are now treating venture capital as a structured asset class alongside stocks and real estate.