SoftBank, one of the earliest and biggest investors in Ola Electric, has reduced its stake in the company between July 15 and September 2, 2025. Through its investment arm, SVF II Ostrich (DE) LLC, SoftBank sold nearly 94.9 million equity shares, equal to 2.15% of the company’s total shareholding. This brought down its ownership from 17.83% to 15.68%, which means SoftBank now holds about 69.16 crore shares compared to over 78 crore earlier.
The stock market reacted quickly to the news. Ola Electric’s shares fell by around 6–7% on the same day, closing near ₹64.59 on the BSE. On the NSE, the fall was even sharper, close to 7%. This shows how sensitive investor sentiment is to the actions of large institutional investors.
SoftBank’s move looks like a portfolio adjustment rather than a complete exit. Even after the sale, it remains the second-largest shareholder in Ola Electric, only behind founder Bhavish Aggarwal. The Japanese investment giant has a history of trimming its stakes in companies after they go public or when the sector is volatile. This allows it to rebalance its portfolio and book partial profits while still keeping exposure to the company’s long-term prospects.
The timing of this sale is significant because Ola Electric went public only in December 2024. Investors usually expect early backers to hold their stakes longer after an IPO, so any large sale soon after listing raises eyebrows.
The company’s financial results have also added pressure. In the first quarter of FY26, Ola Electric’s revenue fell almost 49.6% year-on-year to ₹824 crore. At the same time, its net losses widened by 23.3% to ₹428 crore. These figures show that while the company is expanding aggressively, it is still struggling to turn profitable.
Interestingly, despite weak financials, Ola Electric’s stock price had risen more than 50–70% in the weeks before SoftBank’s sale. The rally began after the stock hit a 52-week low of ₹39.60 in mid-July. This sharp rise in price followed by a sudden stake reduction adds to the uncertainty for retail investors.
Ola Electric has benefited from government incentives. Its Gen 3 S1 scooters have received ARAI certification under the Production Linked Incentive (PLI) scheme, making the company eligible for incentives of 13–18% until 2028. These benefits could support Ola Electric’s growth in the long run.
However, there are also challenges. The government recently cut GST on petrol-based two-wheelers from 28% to 18%. This makes traditional scooters and bikes cheaper, potentially reducing the cost advantage of electric vehicles. In addition, competition in the EV market is heating up, with rivals such as Ather, TVS, and Tata making strong moves. Ola Electric must also deal with issues such as vehicle recalls, delivery delays, and execution challenges that can damage its reputation.
SoftBank is not the only big investor reducing exposure to Ola Electric. Other early backers like Tiger Global and Z47 (formerly Matrix Partners) have also sold small parts of their holdings. Tiger Global reduced its stake by 0.21%, while Z47 sold around 0.79%. These sales suggest that large investors may be using the recent rally in Ola Electric’s stock price to cash out some of their gains.
The stake sale by SoftBank can be seen in two ways. On one hand, it may look like a warning sign. The company is facing revenue declines, widening losses, regulatory changes, and growing competition. When big investors cut their stakes in such situations, it often reflects falling confidence. Retail investors, who are more vulnerable to volatility, should take note of this.
On the other hand, SoftBank still holds a large 15.68% stake in Ola Electric, showing that it has not completely lost faith. The company continues to benefit from policy support, and its ambitious projects like the Futurefactory and Gigafactory are aimed at building a strong base for future growth. The recent IPO and strong stock rally also indicate that the broader market continues to see potential in the business.
This event is important not just for Ola Electric but for the entire electric vehicle sector in India. It highlights how quickly market sentiment can shift based on the actions of large institutional investors. For the EV industry, the next few years will be crucial as companies try to scale production, cut costs, and win consumer trust. Policy changes, competition, and execution challenges will all decide which players survive and thrive.
SoftBank’s decision to reduce its stake in Ola Electric by 2.15% may not be an outright warning signal, but it certainly highlights the challenges the company faces. The sharp fall in revenue, widening losses, and changing government policies create an uncertain environment. At the same time, strong investor interest, policy incentives, and long-term growth potential in the EV sector keep the optimism alive.
For investors, this is a moment to stay alert. Ola Electric remains a key player in India’s electric mobility push, but the road ahead will not be smooth. Careful tracking of its financial performance, execution capabilities, and market strategy will be essential in deciding whether this is a short-term correction or a sign of deeper trouble.