Ola Electric’s S1 Air / Photo credit: Ola Electric
India’s Ola slashed its losses in the ride-hailing business by 65% to 10.8 billion rupees (US$130.3 million) for the financial year ending March 31, 2023, according to financial statements from parent company ANI Technologies.
The number comes as sales for FY 23 shot up to 19.9 billion rupees (US$239 million) compared to 12.2 billion rupees (US$147 million) in the previous year.
Aside from ride-hailing, ANI Technologies also houses Ola’s other companies, including Ola Financial Services, Ola Fleet Technologies, and Ola Stores Technologies. On a consolidated basis, the parent reported 28 billion rupees (US$337.1 million) in sales and a 7.7 billion rupee (US$93 million) loss for FY 23.
Tech in Asia has reached out to Ola for comment.
Among ANI Technologies’ subsidiaries, fleet management business Ola Fleet Technologies contributed the highest sales at 1.9 billion rupees (US$22.9 million), though it was a sharp 56.6% decline compared to FY 22. The 3.9 billion rupee (US$46.7 million) loss after tax, while a slight improvement from FY 22, was still about 2x higher than revenue.
Ola Financial Services, meanwhile, plunged back into losses after a profitable FY 22. Also posting losses are grocery unit Ola Stores Technologies (at 811.5 million rupees, or US$9.8 million) and food delivery service Pisces eServices (at 1.1 billion rupees, or US$12.8 million).
Ola Electric, the electric two-wheeler manufacturer established by Ola founder Bhavish Aggarwal, was also a wholly owned subsidiary of ANI Technologies until 2019. It was then spun off as a separate entity and is targeting an IPO this year.
Should the IPO take place, Ola Electric would become India’s first EV startup to go public. It expects to raise anywhere between US$700 million to US$800 million, which would value the company between US$7 billion and US$8 billion.
See also: GoTo’s on-demand segment charts its roadmap to profitability
Currency converted from Indian rupee to US dollar: US$1 = 83.03 rupee.
Editing by Putra Muskita and Dhania Putri Sarahtika
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