Ola Electric's Auditor Uncovers Concerning Inventory Control Issues

In a concerning development, Ola Electric's statutory auditor has uncovered a "material weakness" in the internal controls of the company's key operating arm, Ola Electric Technologies. The auditor's findings, as observed in Ola Electric's FY25 annual report, indicate a failure to properly verify the physical inventory of raw materials and finished goods stored at the company's facilities, including state distribution centers. This oversight could potentially lead to misstatements in Ola Electric's financial statements, including inventory, cost of materials, and work-in-progress accounts.

Ola Electric, which has already faced regulatory scrutiny, quality complaints, and pushback from users, now has another challenge to contend with as it navigates an intense competition with rival Ather Energy in the domestic EV market. The company has also been forced to hit pause on expansion plans to focus on profitability after a 23% rise in net losses and a 50% drop in revenue in the June 2025 quarter.

In a separate development, Freshworks founder Girish Mathrubootham is set to step down as executive chairman on December 1, 2025, capping a 15-year journey that saw the Chennai-based SaaS startup go public on the Nasdaq in 2021. Mathrubootham, who had already handed over the CEO role to Dennis Woodside in 2014, will now focus on his $235 million Together Fund, which backs early-stage SaaS and AI startups.

Meanwhile, India's drone startups are poised to benefit from a recent GST Council decision to slash rates on unmanned aerial vehicles (UAVs). The move is expected to free up capital for R&D, accelerate breakevens, and make drone adoption more affordable across sectors like agriculture, defense, and industry.