Ola Electric’s early backer Z47 fully exits with 7-10X returns

Z47, formerly known as Matrix Partners India, has completely sold its stake in electric vehicle maker ola Electric, according to filings with the stock exchanges.

The venture capital firm was an early investor in Ola Electric, co-leading a funding round in 2019 alongside Tiger Global.

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According to filings, the VC firm has been gradually reducing its stake in Ola Electric since the quarter ending December 31, 2024. By Q1 FY26, its holding had fallen to 1.93%, down from 2.79% after Ola’s stock market listing in August last year.

According to a media report quoting a source, Z47 earned 7–10 times its Rs 107 crore investment after fully exiting Ola Electric.

The investment exit comes as Bhavish Aggarwal-led Ola Electric faces increasing competition from rivals like TVS Motor, Bajaj Auto, and ather energy. In November, the company’s market share fell to fourth place, behind Hero MotoCorp.

Notably, as of November last year, the company was the top EV maker by sales, selling 29,322 scooters and holding about 24.5% of the electric two-wheeler market.

A year later, the company sold only 8,254 units and its market share dropped to 7.4%. The fall in sales also hurt its overall revenue.

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In the quarter ending September 30, 2025, Ola Electric’s revenue from operations fell 43.1% to Rs 690 crore, down from Rs 1,214 crore during the same period last year.

However, despite the revenue drop, the company moved slightly closer to profitability. Its net loss fell by 15.5%, from Rs 495 crore in Q2 FY25 to Rs 418 crore in Q2 FY26.

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