Ola Consumer moves toward IPO despite weaker results

Ola Consumer said its board has approved steps toward an IPO even as parent ANI Technologies posted weaker FY25 results.

ANI Technologies reported revenue of 11.7 billion rupees (US$124 million) in FY25, down 42% from more than 20 billion rupees (US$211 million) a year earlier.

Its loss widened to 6.6 billion rupees (US$70 million) from 3.3 billion rupees (US$34.7 million).

Moody’s downgraded ANI Technologies in November 2025 and assigned a negative outlook, citing weaker operating performance, pressure on liquidity.

The company said it has sufficient resources, including liquid investments in listed entities, to meet its financial obligations and continue operations.

🔗 Source: The Economic Times

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Implications, context, and why it matters.

Ola’s IPO plan faces a tightening cash squeeze

Moody’s cut ANI Technologies to Caa1 from B3, pushing it deeper into junk debt with higher default risk 1.
The pressure sits in a US$65 million term loan. ANI Technologies must hold cash equal to 40% of the outstanding balance, or at least US$26 million. A breach would count as a default and could speed up repayment, said Moody’s 2.
Its financial buffer is thinning fast. Net worth fell 57% in fiscal year 2025 3.
The strain also shows in ride hailing. Ola Consumer’s market share slid to about 20% to 25%, down from 40% to 45% in 2023. Rapido, an Indian ride-hailing startup, has gained ground 3.

Trouble in ride hailing could reach Ola Electric

To bring in cash, Ola Consumer is weighing a sale of its 3.64% stake in Ola Electric Mobility, its affiliated electric-vehicle company. Moody’s values that holding at about US$90 million 4.
That option looks weaker now. Ola Electric shares are down 38% from the IPO issue price, and net loss widened to 4.3 billion rupees (US$45.2 million) in Q1 FY26 5.
Shareholders approved changes to the use of IPO proceeds. Ola Electric added debt repayment or prepayment, raised spending for growth, and cut the allocation for Research and Development (R&D) 5.
That tie raises risk for both sides. A forced sale by Ola Consumer could push Ola Electric shares lower, which would hurt both companies and deepen doubts around cash-burning Indian tech IPOs 6.