In a major development, South Korean auto giants Hyundai Motor and Kia Corporation have completely exited Ola Electric, selling their combined stake for ₹690 crore through block deals on Tuesday. This move comes as a strategic shift after more than five years of investment in the Indian electric vehicle (EV) startup.
According to stock exchange data, Hyundai sold its 2.47% stake in Ola Electric for ₹552 crore, while Kia offloaded its 0.62% holding for ₹137 crore. The two companies had initially invested $300 million in Ola Electric back in 2019 to support the EV revolution in India.
Citigroup Global Markets Mauritius emerged as a key buyer, acquiring 1.95% stake (8.61 crore shares) for ₹435 crore. However, the remaining buyers of the shares, accounting for over 63% of the total stake, remain undisclosed.
The stake sale follows a disappointing financial performance by Ola Electric. In Q4 FY25, the company reported a net loss of ₹862 crore, more than double the loss in the same quarter last year. Operating revenue also dropped nearly 50% year-on-year, reaching just ₹611 crore. For the entire FY25, Ola Electric’s net loss widened to ₹2,276 crore, up from ₹1,584 crore in FY24.
As a result, Ola Electric’s stock fell by over 8%, closing at ₹49.61, and its market capitalization dropped to ₹21,882 crore (around $2.57 billion).
While Hyundai and Kia’s exit signals caution among strategic investors, Citi’s buy-in suggests some confidence still exists in Ola Electric’s long-term future. However, with mounting losses and increasing competition, the startup faces a tough road ahead in achieving profitability by FY26.
Feature Your Startup on StartupbyDOC
Reach thousands of investors, founders & future customers