Ola Electric Shares Tumble 5% After CMO Anshul Khandelwal & CTO Suvonil Chatterjee Resign; What's Next?

The shares of Ola Electric Mobility took a sharp hit on Monday, December 30, plunging over 5% to Rs 86 per share during the early trading session. The decline followed the resignation of two top executives-Chief Marketing Officer (CMO) Anshul Khandelwal and Chief Technology and Product Officer (CTO) Suvonil Chatterjee-effective December 27.

In a regulatory filing made public on Friday, the Bengaluru-based electric vehicle (EV) giant announced the resignations, citing personal reasons. "We hereby inform you that Mr. Anshul Khandelwal, Chief Marketing Officer, and Mr. Suvonil Chatterjee, Chief Technology and Product Officer, have tendered their resignation with effect from December 27, 2024," the statement read.

Journey at Ola

Both Khandelwal and Chatterjee were integral members of Ola's leadership, having started their journey at Ola Cabs before transitioning to Ola Electric. Chatterjee joined Ola in 2017 as Head of Design and was elevated to the CTO role in 2021. Khandelwal's association began in 2018 as Head of Marketing, followed by his role at Ola Foods. He joined Ola Electric in 2019 after the acquisition of Foodpanda and took over as CMO in 2022.

Their departure adds to a growing list of high-profile exits from Ola's businesses. Earlier this year, company secretary and compliance officer Pramendra Tomar resigned, followed by Chief People Officer N Balachandar in December.

The resignations come amidst Ola Electric's aggressive push to expand its retail footprint. Earlier this week, the company announced a plan to increase its network to 4,000 stores by adding 3,200 outlets in a single day.

However, Ola Electric has also faced a string of challenges. The company recently laid off 300-400 employees, primarily in manufacturing and supply-chain roles, as part of a restructuring effort. It is also grappling with declining market share, increased customer complaints, and intensified regulatory scrutiny.

India's heavy industry ministry is auditing Ola Electric's service centres, while the Central Consumer Protection Authority (CCPA) served the company a notice in October 2024 over allegations of customer rights violations, misleading advertising, and unfair trade practices.

High Attrition

Ola Electric has acknowledged a high employee attrition rate in its IPO prospectus. In FY24, the attrition rate was 44.25%, reflecting challenges in retaining talent. Top-level departures have also plagued Ola's parent company, ANI Technologies, which oversees the ride-hailing business.

In May, Kartik Gupta, Chief Financial Officer (CFO) of ANI Technologies, resigned, just two weeks after the CEO of the mobility business, Hemant Bakshi, stepped down. In October, Sidharth Shakdher, Chief Business Officer of Ola Consumer, quit after a short tenure to join Paytm.

Market Reaction

The leadership turmoil has weighed heavily on Ola Electric's stock performance. By 12:25 pm on Monday, the company's shares were trading with cuts of nearly 4% at Rs 86.55 per share on the National Stock Exchange (NSE). Despite the recent dip, the stock has delivered a modest return of around 14% since its listing on August 10, 2024.

While Ola Electric continues to expand its retail footprint, the frequent leadership changes and employee layoffs raise concerns about organizational stability. The company's growth plans, including its aim to become a dominant player in the EV market, could face hurdles.