Ola Electric hasn’t had the best start to 2025.
After the company had lost its leadership position in the Indian electric two-wheeler space, and then laid off over 1,000 employees, it’s now facing an insolvency case. Rosmerta Digital Services Limited, an operational creditor of Ola Electric has filed a petition under India’s Insolvency and Bankruptcy Code alleging a default in payments. It sought to initiate a corporate insolvency resolution process against Ola Electric.
“We wish to inform you that a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code 2016 by M/s. Rosmerta Digital Services Limited an Operational Creditor of Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electrc Mobility Limited . The petition has been submitted before the National Company Law Tribunal – Bengaluru Bench, alleging to default in payment towards the services rendered by the Operational Creditor and seeking initiation of the Corporate Insolvency Resolution Process against the Ola Electric Technologies Private Limited,” Ola Electric told stock exchanges.
Ola said it disputes the claims made by Rosmerta Digital, and will contest the charges. “The Company has sought appropriate legal advice and it strongly disputes the claims made. The Company will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter,” Ola Electric said.
Rosmerta Digital Services was one of the vehicle registration service providers for Ola Electric. After the official number of registrations on the Vahaan portal had shown a precipitous drop for Ola Electric in February, the company had said that it was renegotiating contracts with its vehicle registration service providers, which had caused the numbers to fall. Ola Electric CEO Bhavish Aggaral too had hinted at an issue with the registration providers. “The Ola Electric registration process is also streamlined now,” he had posted on X on 12th March. “Daily registrations are now at previous month levels. Will clear all backlog through next 10-15 days. Had to automate and move the process in house. Order delivery times have been reduced from 10-12 days to 3-4 days and in some cases even same day! KPO companies in India need to up their game else AI is going to eat their lunch,” he had added.
But one of these registration services companies has now dragged Ola Electric to insolvency court. This is the latest crisis to hit the company in the last few months. Apart from its loss of market leadership and the layoffs, Ola Electric has been pulled up by SEBI over CEO Bhavish Aggarwal sharing business plans on X before informing the exchanges, and has been given a notice by the Central Consumer Protection Authority over unfair trade practices and misleading claims. Earlier this month, Ola Electric’s showrooms were raided over alleged trade certificate violations. And with the company now being dragged to insolvency court by a creditor, the list of Ola’s problems continues to grow longer.