Rosmerta Files Insolvency Plea Against Ola Electric Subsidiary Over Payment Default

Rosmerta Digital Services Ltd has filed an insolvency petition against Ola Electric Mobility's subsidiary Ola Electric Technologies before the National Company Law Tribunal (NCLT), alleging that the electric two-wheeler maker has defaulted on payments for the services provided.

“We wish to inform you that a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") by M/s. Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd, a wholly owned subsidiary of Ola Electric Mobility Ltd,” the automaker said in an exchange filing.

“The petition has been submitted before the NCLT – Bengaluru Bench, alleging to default in payment towards the services rendered by the Operational Creditor and seeking initiation of the Corporate Insolvency Resolution Process against the Ola Electric Technologies,” Ola Electric said.

Rosmerta Digital is a subsidiary of Rosmerta Technologies Ltd that provides digitally-enabled services and digitally-enabled channel sales of vehicles, components and accessories. The company approached the NCLT a couple of weeks after Ola Electric said it was renegotiating terms with Rosmerta Digital and Shimnit India to "reduce cost and enhance registration process efficiencies."  

Last week, Ola Electric said it had successfully implemented the Network Transformation and Opex Reduction Program, a company-wide initiative launched in November 2024 to reduce costs and improve customer experience. This initiative has resulted in a sustainable cost reduction of Rs 90 crores per month and could help its automotive division achieve EBITDA breakeven in the first quarter of the next financial year.

Ola Electric had noted that its vehicle registration process transformation is in its final stages. 

The automaker said it is “strongly” disputing the claims made by Rosmerta Digital in the insolvency petition and has sought appropriate legal advice. “The company will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter,” Ola Electric said.