Z47 sells off about 0.81% of its ownership in Ola Electric, while Tiger Global decreases its ownership by 0.21%.
In the first quarter of the current financial year, Z47 (formerly known as Matrix Partners India) and Tiger Global Management, two early investors in the electric two-wheeler maker Ola Electric, trimmed their holdings in the company.
Z47 offloaded approximately 0.81 percent of its stake, reducing its shareholding to around 1.93 percent, or 8.5 crore shares[1][4]. Tiger Global, through its Internet Fund III, reduced its stake by about 0.21 percentage points, taking its holding to 3.24 percent at the end of June (down from 3.45 percent three months earlier)[1][3].
The sale by Z47 generated an estimated Rs 144–187 crore, while Tiger Global’s disposal fetched an estimated Rs 36–585 crore, depending on the valuation cited in different reports[1][4][3].
Ola Electric, based in Bengaluru, reported a sharp 50 percent fall in operating revenue to INR 828 crore in the April to June quarter of the current financial year. The company's net loss widened to INR 428 crore from INR 347 crore a year earlier[2].
Interestingly, Ola Electric's stock has declined 52 percent this year, closing at INR 40.86 on Tuesday[5]. Notably, Hyundai and Kia also sold shares in Ola Electric during the same period, with Hyundai fully divesting its holding in June through open market deals, selling shares worth INR 552 crore[6].
Z47 has backed Ola's ride-hailing business Ola Consumer and founder Bhavish Aggarwal's artificial intelligence venture Krutrim. Tiger Global also invested further in Ola Electric's Series E fundraise in 2023[7].
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[1] - Source for Z47's stake reduction and estimated sale value [2] - Source for Ola Electric's financial performance [3] - Source for Tiger Global's stake reduction and estimated sale value [4] - Source for Z47's current stake and share count [5] - Source for Ola Electric's stock performance [6] - Source for Hyundai's share sale [7] - Source for Z47 and Tiger Global's additional investments in Ola Electric and related ventures.
Investors Z47 and Tiger Global's selling of shares in Ola Electric, a tech-oriented business, might suggest they are seeking funds for other ventures. The proceeds from Z47's stake sale, estimated to be around Rs 144–187 crore, could be used for financing new projects or investments. Similarly, Tiger Global raised an estimated Rs 36–585 crore from their disposal, potentially to be invested in different technology sectors. Despite the financial backing from these investors, Ola Electric reported a significant drop in operating revenue and an increased net loss in the recent financial quarter.
