In a significant turn of events, Ola Cabs announced on Thursday the achievement of profitability in its India mobility business for the fiscal year 2022-23, showcasing a remarkable recovery compared to the preceding year. The company also introduced Hemant Bakshi as the new Chief Executive Officer (CEO) of Ola Mobility, unveiling its ambitious plans for expansion in various sectors.
According to Ola’s financial disclosures, the India mobility business not only broke even but posted a ‘segment-adjusted’ EBITDA of approximately INR 250 Cr in FY23. This marks a substantial improvement from the EBITDA loss of INR 66 Cr in the previous fiscal year. The revenue for the India mobility arm surged by 58%, reaching INR 2,135 Cr in the fiscal year ending March 2023, compared to INR 1,350 Cr in FY22.
The parent company, ANI Technologies, reported a consolidated net loss reduction of about 50%, narrowing it down to INR 772.2 Cr in FY23 from INR 1,522.3 Cr in the preceding fiscal year. Simultaneously, sales witnessed a robust 42% increase, soaring to INR 2,799.3 Cr in FY23 from INR 1,970.4 Cr in FY22. ANI Technologies, encompassing various subsidiaries such as fleet services, cab services, and financial services, has evidently contributed to this positive trajectory.
Notably, Ola claimed an improved consolidated EBITDA loss of INR 29 Cr in FY23 (excluding discontinuous businesses) compared to INR 291 Cr in the previous fiscal year. This positive financial outlook aligns with Ola’s strategic focus on sustainable growth.
Hemant Bakshi, the newly appointed CEO of Ola Mobility, expressed enthusiasm about the milestone, stating, “As Ola’s India Mobility business turns profitable in FY23, it is a testament to the resilience and innovation that has defined our journey. Our focus on sustainable growth has not only fortified our financial standing but has also set the stage for an exciting future of expansion and industry leadership.”
These developments come in the wake of Ola Electric, led by Bhavish Aggarwal, filing its draft red herring prospectus (DRHP) with the market regulator SEBI. Ola Electric aims to raise INR 5,500 Cr through a fresh issue, further emphasizing Ola’s commitment to advancing in the electric vehicle (EV) sector.
