Ola’s Vehicle Registration Provider Files Insolvency Plea Against The Company

Rosmerta Digital Services, a service provider and creditor of Ola Electric, has filed for insolvency after alleging the electric two-wheeler manufacturer defaulted in payments. Rosmerta is responsible for handling vehicle registrations at various regional transport offices (RTOs) across the country. 

The insolvency plea has been filed at the National Company Law Tribunal’s (NCLT’s) Bengaluru branch. In an exchange filing, Ola Electric informed that, “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.”

Ola Electric said it “strongly disputes” the insolvency claims made by Rosmerta technologies and has sought appropriate legal advice. Ola Electric also said it will take “appropriate steps to protect its interests” and obviously, object to all the allegations made against electric two-wheeler manufacturer. 

This, interestingly, comes amid Ola Electric negotiating its vehicle registration contracts with Rosmerta Digital Services and Shimnit India Pvt Ltd. In a stock exchange filing from February, Ola Electric said it was revising existing agreements with the two companies as part of a sales overhaul and to “reduce cost and enhance registration process efficiencies”. Due to this, Ola Electric also said its registration numbers on the Vahan portal will be impacted for February 2025. 

In other news, Ola Electric expects its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) to break even by the first quarter of the financial year 2026 (FY26). One of the ways Ola Electric says it will do that is by improving vehicle registrations and reducing inventory time of scooters.