SoftBank Trims Stake In Ola Electric As Investor Activity Heats Up In India’s EV Space

In yet another sign of churn in India’s fast-growing electric vehicle (EV) landscape, Japanese investment giant SoftBank has pared its stake in Ola Electric. The Masayoshi Son-led fund has offloaded 2.15% of its shareholding in the Bhavish Aggarwal-founded company, signaling a quiet reshuffling of investor positions ahead of the EV unicorn’s bigger growth bets.

According to a regulatory filing, SoftBank’s investment arm SVF II Ostrich (DE) LLC sold 9.4 crore equity shares of Ola Electric in a series of open market transactions between July 15 and September 2.

Before the sale, SoftBank held 78.65 crore equity shares, which translated to a 17.83% stake in the company. Post-disposal, its ownership has dipped to 15.68%, or 69.16 crore shares.

The move comes at a time when Ola Electric’s shares have been under pressure in the market. On the day of the announcement, the stock ended 6.3% lower at ₹64.59 on the Bombay Stock Exchange (BSE).

Ola Electric At The Center Of India’s EV Rush

Ola Electric, born out of ride-hailing giant Ola, has grown into one of India’s most visible names in the EV revolution. The Bengaluru-headquartered firm, led by Bhavish Aggarwal, has positioned itself as a frontrunner in the country’s transition to green mobility, with its Ola S1 range of scooters and plans to expand into electric cars and battery tech.

The company also has big ambitions on the manufacturing front. Its Futurefactory in Krishnagiri, Tamil Nadu, touted as one of the world’s largest two-wheeler EV factories, is central to its vision of scaling rapidly and making EVs mainstream in India.

Despite these ambitions, the company has faced its share of challenges — from product recalls to delivery delays — but continues to attract investor and consumer attention alike.

Why SoftBank’s Stake Sale Matters

SoftBank has been one of the earliest backers of Ola and Ola Electric, pumping in capital during their aggressive expansion phases. Its latest trimming of stake does not necessarily signal an exit, but rather portfolio rebalancing, as global investors continue to recalibrate amid volatile markets.

For Ola Electric, the development comes at a crucial juncture. The company is working on strengthening its supply chain, scaling production, and expanding product lines to capture India’s rapidly growing EV demand.

The broader EV sector in India is witnessing a flurry of activity. From startups like Ather Energy and Ultraviolette to legacy automakers like Tata Motors and TVS Motor, competition is intensifying. Government incentives, state EV policies, and a rising consumer shift toward sustainable vehicles are all fueling the momentum.

Market Reactions & What Lies Ahead

The decline in Ola Electric’s share price following SoftBank’s stake sale underscores the sensitivity of retail investors to movements by marquee global funds. However, it’s not uncommon for large investors to trim positions, especially when they still retain significant holdings, as SoftBank does.

For Bhavish Aggarwal and his team, the bigger story remains the execution of Ola Electric’s ambitious roadmap — from new scooter launches to the long-anticipated electric car project. The company is also investing in battery innovation and charging infrastructure, aiming to create a full-stack EV ecosystem rather than being just another vehicle manufacturer.

As India positions itself as a future EV hub, Ola Electric stands at a crossroads. With heavyweights like SoftBank still holding a substantial stake, the road ahead is less about investor exits and more about whether the company can live up to its disruptive vision.