Insolvency Petitions on Ola Electric: What happened?
Ola Electric Mobility Ltd, India’s popular electric scooter company, is now facing another problem. Two key vehicle registration service providers have filed insolvency petitions against Ola Electric Technologies Pvt, a unit of the company. These providers are Rosmerta Digital Services Pvt. and Rosmerta Safety Systems, which supplies vehicle registration services and high security registration plates to Ola. They say that Ola has not paid their invoices.
What’s the matter?
Rosmerta Digital Services has claimed unpaid dues of 220 million rupees ($2.5 million) against Ola Electric Technologies.
Rosmerta Safety Systems has also demanded payment of 25 million rupees.
Ola Electric Technologies, a wholly-owned subsidiary of Ola Electric Mobility, generates major revenue for the parent company.
Ola Electric has told stock exchanges that Rosmerta Digital Services has filed an insolvency plea in the National Company Law Tribunal (NCLT), Bengaluru. The company has also said that it strongly disputes these claims and is seeking legal advice.
Ola’s new plan:
Ola Electric is now taking its vehicle registration process “in-house”, which means it will now handle the work itself. The company announced last month that it was “renegotiating” contracts with its service providers, including Rosmerta Digital and Shimnit India Pvt.
Ola’s Challenges:
These insolvency petitions add to Ola Electric’s already growing problems. The company is facing regulatory scrutiny, customer complaints, and financial strain. An investigation by Bloomberg News found that 95% of Ola’s 4,000 showrooms lack necessary approvals, prompting transport authorities in several states to raid, shut outlets, seize vehicles, and issue notices to the company.
Apart from this, Ola Electric is also reducing its workforce, and its shares have fallen by more than 65% since the IPO launch in August 2025. Investors are concerned about the operational and regulatory hurdles of the company.
