Ola Electric is set to make a significant stride by offering its products on the Open Network for Digital Commerce (ONDC) starting next week.
Key Highlights:
Co-founder Bhavish Aggarwal announced this move in a recent post, emphasizing that all Ola Electric products, including the Ola S1 X series, Ola S1 Pro, and Ola S1 Air, will be available on ONDC. The integration with ONDC aims to expand Ola Electric’s market reach and provide consumers across India with easier access to its products.
Bhavish Aggarwal has expressed a positive outlook on ONDC, likening it to the “UPI moment for e-commerce” during the Ola Sankalp 2024 event on August 15. This demonstrates Ola Electric’s strong belief in the potential of ONDC as a catalyst for transforming the e-commerce landscape in India. Notably, Ola Electric previously collaborated with ONDC, initially piloting a food delivery platform in partnership with the network. Subsequently, the company expanded its engagement by venturing into last-mile logistics services for various categories, such as food delivery, grocery shopping, and pharmaceuticals.
Ola Electric’s Market Debut and Quarterly Performance
The timing of this integration aligns with Ola Electric’s recent debut on the stock market on August 9. Despite the much-anticipated IPO, the company witnessed a relatively modest response on the listing day, with its stock making a flat debut on the bourses. While the stock price surged to twice its listing price initially, it appears to have lost momentum since then. On Thursday, shares of Ola Electric closed 4.37% lower at INR 120.27 on the BSE, marking a 58.2% increase from the listing price.
From a financial standpoint, Ola Electric experienced a widening of its net loss to INR 347 Cr in the June quarter (Q1) of the financial year 2024-25, representing a 30% year-on-year increase. However, the company’s revenue from operations surged by 30% year-on-year to INR 1,644 Cr during the reporting period, signaling promising growth prospects amidst the challenging market conditions.
The decision to leverage ONDC’s infrastructure reveals Ola Electric’s strategic focus on enhancing accessibility and streamlining the distribution of its electric products. By tapping into ONDC’s network, Ola Electric aims to capitalize on the platform’s reach and capabilities to drive consumer engagement and foster a seamless purchasing experience for its products nationwide. As the digital commerce ecosystem continues to evolve, Ola Electric’s collaboration with ONDC underscores its commitment to innovation and adaptability in navigating the dynamic e-commerce landscape.
Ola Electric’s forthcoming presence on the Open Network for Digital Commerce signifies a significant step towards broadening its market influence and reinforcing its commitment to delivering innovative and sustainable mobility solutions to consumers across India. As the company continues to navigate the complexities of the stock market and pursue strategic partnerships, the integration with ONDC positions Ola Electric to engage with a broader audience and elevate the accessibility of its electric vehicle offerings in the evolving digital commerce space.ELCTRK Speaks
