Ola Electric’s stock extended its slide on Thursday, December 18, 2025, sinking to a fresh 52-week (and all-time) low as investors reacted to another round of promoter selling by founder Bhavish Aggarwal—even as the company positioned the move as a clean-up of personal leverage meant to remove “pledge overhang” risk. [1]
At the same time, a very different signal came from India’s enterprise software sector: customer engagement platform MoEngage said it has closed a $280 million Series F, highlighting how global capital is still backing scaled Indian SaaS stories with clear overseas growth paths. [2]
What happened to Ola Electric stock on December 18, 2025
In early trading on December 18, Ola Electric shares dropped sharply and touched ₹31.54, marking a new low for the past year—and in some reports, a fresh record low—before hovering around the ₹31–₹32 range. Business daily coverage pegged the company’s market value near ₹13,951 crore at the time. [3]
The move followed another large secondary-market sale by Aggarwal, coming just a day after a first tranche of selling. Market participants often read repeated promoter sales—regardless of the stated intent—as a near-term sentiment drag, particularly when a stock is already under pressure. [4]
The stake sale: two days, about 6.8 crore shares, roughly ₹234 crore
The promoter transactions that set the tone for this week’s trading unfolded across two consecutive sessions:
- December 16: Aggarwal sold ~2.62 crore shares at about ₹34.99 per share (around ₹92 crore). [5]
- December 17: He sold another ~4.19 crore shares at about ₹33.96 per share (roughly ₹142 crore). [6]
Put together, that’s nearly 6.8 crore shares sold in two days—about ₹234 crore in aggregate value—an unusually headline-grabbing sequence for a newly listed consumer-tech/EV name. [7]
Why Bhavish Aggarwal is selling: repaying a ₹260 crore promoter loan and removing pledged shares
Ola Electric’s central message has been consistent across filings and media statements: the selling is “one-time” and “limited”, carried out at the promoter’s personal level, with the objective of fully repaying a ₹260 crore promoter-level loan and thereby releasing shares that were pledged as collateral. [8]
Key mechanics, as described in multiple reports:
- Aggarwal planned to sell up to ~2.78% stake over a short period. [9]
- The sale would enable the release of ~3.93% of Ola Electric’s total equity that had been pledged. [10]
- After the transactions, the promoter group was expected to continue holding around ~34%, which the company has described as relatively high among new-age listed peers. [11]
The “pledge overhang” problem—why markets care
In plain terms: when promoters pledge shares to raise personal debt, a sharp fall in the stock can trigger margin calls. In some scenarios, lenders can sell pledged shares into the market, creating the fear of forced selling and amplifying volatility. Analysts quoted in coverage said that releasing pledged shares can remove a meaningful risk layer—but that it doesn’t automatically fix the business fundamentals investors are worried about. [12]
The AI angle: collateral for Krutrim and the recycling of founder capital
One of the most closely watched elements in this episode is where the pledge-backed borrowing was ultimately directed. Coverage in both tech and markets reporting said the pledges were connected to financing for Aggarwal’s AI venture Krutrim AI, and that pledged equity in Ola Electric was being used to raise funds without selling ownership in the AI company. [13]
The Economic Times’ tech newsletter and explainer format also laid out a timeline: early pledges beginning last year, a stepped-up pledge in March (including a large share count), and pledged shares reaching 13.3% of Aggarwal’s Ola holding by early December—equivalent to 3.93% of Ola Electric’s equity. [14]
Investor concerns extend beyond pledges: demand, competition, and financial results
Even with the “pledge clean-up” narrative, December 18 trading showed investors are still focused on core execution.
Market reporting pointed to:
- Slowing demand and falling market share in electric two-wheelers, with Ola described as slipping behind established rivals in recent monthly rankings. [15]
- A tough operating backdrop reflected in recent financial disclosures. Economic Times market coverage cited a consolidated net loss of ₹418 crore for the September quarter, alongside a steep year-on-year revenue decline (reported at ₹756 crore in that story). [16]
- Additional pressure points including competition and service network disruptions, cited as factors behind weaker sentiment. [17]
This is the tension investors are trying to resolve: is the promoter sale a governance-positive de-risking move, or is it occurring in the middle of an extended operational reset that will take longer to convince markets?
How Ola Electric framed the move
Across multiple reports, the company emphasized three points:
- The sale is personal to the promoter and not a corporate fundraising event. [18]
- There is no change in control and no shift in strategic direction. [19]
- Eliminating pledges is intended to reduce “avoidable risk and volatility.” [20]
In other words, Ola Electric’s message to the market is: don’t read this as an exit; read it as a de-leveraging.
A contrasting headline from India’s startup ecosystem: MoEngage closes $280 million Series F
While public-market scrutiny has intensified on consumer and EV stories, enterprise software firm MoEngage delivered a capital-markets counterpoint: the company raised an additional $180 million as part of its Series F, taking the total Series F to $280 million after a previous tranche announced in November. [21]
Who invested and where the money goes
Reports said the latest funding was led by ChrysCapital and Dragon Fund, with participation from Schroders Capital and continued support from existing backers including TR Capital and B Capital. [22]
MoEngage said it will use the capital to:
- accelerate innovation in its Merlin AI suite,
- expand go-to-market teams in North America and EMEA, and
- evaluate strategic acquisitions to broaden platform capabilities. [23]
Liquidity for employees and secondaries for early investors
A notable feature of this round: employee and early-investor liquidity.
- Coverage said MoEngage completed a second employee tender offer totaling around $15 million, benefiting 259 current and former employees. [24]
- The Economic Times also reported that of the new $180 million tranche, about $57 million was primary capital, with the remainder via secondaries and employee liquidity. [25]
MoEngage’s own positioning, echoed in reporting, is that enterprises are consolidating fragmented marketing and analytics tools into fewer platforms, and that AI-driven engagement products remain a budget priority even amid broader tech scrutiny. [26]
Scale indicators: global footprint and revenue momentum
Moneycontrol’s coverage described MoEngage as serving 1,350+ consumer brands in 75 countries, and the Economic Times reported the company has close to 800 employees globally and recently crossed $100 million in annual recurring revenue (ARR). [27]
What to watch next
For Ola Electric (OlaElec)
- Completion of the broader planned stake sale (up to ~2.78%) and confirmation of the full release of pledged shares. [28]
- Evidence of stabilizing demand and market share—especially in months where competition from legacy OEMs remains intense. [29]
- Upcoming results and guidance, as investors weigh whether the stock’s slide reflects temporary turbulence or a longer re-rating. [30]
For MoEngage
- How quickly Merlin AI investments translate into enterprise wins in North America and EMEA, where SaaS multiples are typically benchmarked. [31]
- Whether M&A becomes a meaningful lever, as hinted in the company’s stated capital deployment plans. [32]
- The path toward IPO readiness, which MoEngage leadership has said depends heavily on market conditions and the eventual listing geography. [33]
References
1. www.business-standard.com, 2. www.business-standard.com, 3. www.business-standard.com, 4. m.economictimes.com, 5. www.ndtv.com, 6. www.ndtvprofit.com, 7. m.economictimes.com, 8. www.moneycontrol.com, 9. economictimes.indiatimes.com, 10. economictimes.indiatimes.com, 11. www.business-standard.com, 12. www.moneycontrol.com, 13. economictimes.indiatimes.com, 14. m.economictimes.com, 15. m.economictimes.com, 16. m.economictimes.com, 17. economictimes.indiatimes.com, 18. www.business-standard.com, 19. m.economictimes.com, 20. www.ndtvprofit.com, 21. www.business-standard.com, 22. www.business-standard.com, 23. www.business-standard.com, 24. www.business-standard.com, 25. m.economictimes.com, 26. www.moneycontrol.com, 27. www.moneycontrol.com, 28. economictimes.indiatimes.com, 29. m.economictimes.com, 30. m.economictimes.com, 31. www.business-standard.com, 32. www.business-standard.com, 33. m.economictimes.com
