SoftBank Cuts Stake in Ola Electric to 15.7%: What It Means for India’s EV Future

SoftBank Trims Stake in Ola Electric: What It Means for the EV Space

1. Breaking Down the Headlines 

On September 4, 2025, SoftBank Group significantly reduced its stake in Ola Electric, selling 2.15% through its investment arm, SVF II Ostrich (DE) LLC, bringing its ownership down from 17.83% to 15.68%.Reuters+1 The sale, spread across multiple open-market transactions between mid-July and early September, involved a total of approximately 94.9 million shares. Bhavish Aggarwal Ola Electric

Despite this reduction, SoftBank remains the second-largest shareholder in the company, trailing only Ola Electric’s founder, Bhavish Aggarwal.

2. Why Now? Timing and Market Buzz

This move follows a surge in Ola Electric’s trading volumes and stock value—up over 10% in two of the past four trading sessions at that time. While SoftBank offloaded part of its holding, investor confidence appeared resilient, driven by Ola’s post-IPO performance and market expectations.

3. Market Reactions: A Rollercoaster of Emotions

The announcement triggered an immediate shock across markets. Ola Electric’s stock plummeted nearly 7–8% intraday—dropping to around ₹63.70 before recovering slightly to close near ₹64.49.

This dip stemmed not just from the stake sale but also broader factors like GST cuts on internal-combustion-engine (ICE) two-wheelers, making them more competitive.

4. The Broader Picture: Ola's Financial Health Ola Electric SoftBank exit

Ola Electric isn't immune to pressures. In early 2025, the company posted significant quarterly losses—₹428 crore, a sharp rise from ₹347 crore year-on-year. Despite cost-cutting efforts that slashed expenses by 42%, revenues fell dramatically—nearly halving to ₹828 crore.

Meanwhile, SoftBank’s Vision Fund 2 reported a $708 million loss, partly tied to Ola Electric and food-delivery player Swiggy underperforming. The stakes—and the need for operational sustainability—are higher than ever for Ola.

5. SoftBank’s Strategy: Exit or Realignment?

SoftBank has previously emphasized that any exit from Ola Electric would be “thoughtful, gradual”, not rushed. This current divestment could be the start of such a strategy—allowing SoftBank to fine-tune its exposure while monitoring Ola’s long-term performance. Ola Electric stock update

6. Investors' Perspective: Interpretation Matters

From an investor’s lens, SoftBank’s move can be seen through two angles:

• Cautious portfolio management — Rebalancing rather than retreating.
• Signal of concern — Prompting caution, especially given Ola’s financial drag and stiffening competition.

Meanwhile, Ola’s PLI certification for its Gen 3 scooter and indigenously developed 4680 Bharat cell battery continue to generate optimism. A story of promise coexists with one of caution.

7. What Could This Mean for the Future? Future of EV startups in India

Stakeholder	Possible Benefit	Potential Challenge
SoftBank	Portfolio optimization	Signal of retreat to stakeholders
Ola Electric	Less shareholder pressure	Must prove profitability and growth
EV Sector	Consolidation and clear focus on winners	Attention to financial sustainability

Ola needs to restore investor faith with clearer usage of capital, stronger margins, and clearer paths to profitability. Continued innovation—like the PLI-backed local battery development—is a strong positive, but tangible results are needed.

Takeaways in Plain English 

SoftBank's trimmed stake in Ola Electric is more than a shareholder shuffle—it reveals evolving dynamics in the Indian EV landscape. The message is simple: expectations need to be met with performance. Ola must bridge the gap between its ambitious vision and actual financial health to justify its valuation and strategic initiatives. SoftBank Vision Fund India

Conclusion

As India moves forward with strong government support to adopt electric vehicles on a large scale, Ola Electric’s journey—powered by new investors and innovative products—is set to play a key role in shaping the future of mobility. The company is not weakened by Softbank’s decision to trim its stake; instead, it shows that India’s EV sector is maturing, opening doors for fresh investments and stronger competition.

In short, this move is less about doubt and more about growth—it’s a clear signal that India’s electric vehicle industry is now ready to stand on its own and move ahead with confidence.

FAQs 

1. Why did SoftBank reduce its stake in Ola Electric?
SoftBank cut its stake from 17.8% to 15.7% as part of portfolio rebalancing and gradual exit strategy, while still staying invested in Ola.

2. How many shares did SoftBank sell in Ola Electric?
It sold around 94.9 million shares between July and September 2025 through open market deals.

3. Who is the largest shareholder in Ola Electric now?
Founder Bhavish Aggarwal remains the biggest shareholder, followed by SoftBank.

4. Did Ola Electric’s stock price fall after SoftBank’s sale?
Yes, the stock dipped 7–8% intraday, also influenced by the government’s GST cuts on petrol two-wheelers.

5. What are the financial challenges Ola Electric is facing?
The company reported heavy quarterly losses of ₹428 crore in 2025 and declining revenues, raising concerns about sustainability.

6. What innovations is Ola Electric working on?
Ola is developing Gen 3 scooters and indigenous 4680 Bharat battery cells, supported by India’s PLI scheme.

7. What does this mean for India’s EV industry?
The move highlights the pressure on EV startups to prove profitability and scalability while investors become more cautious.