The manufacturer of e-scooters, Ola Electric, announced on Wednesday that it will open 3,200 new stores in a single day, increasing its total number of showrooms and service centers to 4,000.
Ankush Aggarwal, group head of Ola Electric's retail auto and financial services business, announced the milestone during a live event that was broadcast on the company's social media channels.
Aggressive expansion plans
With this aggressive expansion, the company hopes to improve its local presence, especially in smaller towns, and address customer dissatisfaction with after-sales service.
In an earlier exchange filing, Ola stated that its direct-to-consumer (D2C) business model would enable every household to own an electric vehicle (EV).
At Ola, we make history everyday. But today is extra special! Let’s celebrate the grand opening of 4000 Ola stores & service centres across India.
— Ola Electric (@OlaElectric) December 25, 2024
Join us at an Ola store near you. This 25 Dec. 11.30 AM.
Head over to https://t.co/HvRTgPdxTy to find the store near you! pic.twitter.com/VfKBMC2H8G
Ola's year was a bumpy ride
Ola Electric had a difficult year prior to the expansion. The business was subject to regulatory scrutiny, a flurry of customer complaints, and social media backlash over product quality issues after its spectacular stock market debut in August.
Ola boss Bhavish Aggarwal's feud with comedian Kunal Kamra over Ola's after sales service delays sparked a debate over the social media platforms. Government probes started to look deeply into company's products and after-sales service provided by the company.
Earlier this year, Ola's service centers witnessed an overwhelming volume of customer complaints, with an average of Rs 80,000 per month. Aggarwal's public altercation with a comedian and reports of broken scooters further damaged the company's reputation.
In October, a notice alleging unfair trade practices was issued by the Central Consumer Protection Authority, and the Ministry of Heavy Industries ordered an audit of Ola's service hubs.
Company's public debut
The company's initial public offering (IPO) was held from August 2 to August 6, 2024, with a price range of Rs 72 to Rs 76 per share. Strong investor interest and confidence in the company's prospects were demonstrated by the stock's rapid rise to the upper circuit limit of 20 per cent on the day of listing, which ended at Rs 91.20 per share.
Company financials
During the July-September quarter, the company's revenue increased by 38.5 per cent year over year to Rs 1,240 crore, according to its first results filing.
From Rs 524 crore in the same quarter last year, Ola Electric's consolidated net loss shrank to Rs 495 crore. Nevertheless, compared to the Rs 347 crore loss recorded in the previous quarter, this represents an increase.