New Delhi, March 20 -- Ola Electric Mobility Ltd is dipping into the funds it raised for innovation to pay off its debt, the latest sign of stress for the Indian electric vehicle (EV) maker as it struggles with slumping sales and stalled fundraising efforts.

After a board meeting on Wednesday, the Bengaluru-based company decided to reallocate Rs.575 crore, out of Rs.1,505 crore it raised for research and development (R&D) during the initial public offering (IPO), to pay debt and fund organic growth activities.

The company's disclosures showed that Rs.475 crore will be used to fund upcoming debt, while Rs.100 crore will be used for growth purposes. This is the second time since going public in August 2024 that the company has changed its...