Ola discloses its first operating profit ahead of potential IPO

CIOReviewIndia | Tuesday, 02 November 2021, 12:13 IST

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Ola discloses its first operating profit ahead of potential IPOIndian ride-hailing company Ola, backed by Japan's Softbank Group Corp., has notched up its first-ever operating profit since beginning operations a decade ago, company documents showed on Tuesday.

Ola, which has a majority share of India's ride-hailing market where it competes with Uber Technologies Inc., has a growing presence in several global markets such as Australia and Britain. It reported standalone operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 89.82 crore for the fiscal year that ended in March 2021, versus a loss of Rs 610 crore a year ago.

Despite revenue down 65% from a year ago after a fall in demand for ride-sharing amid pandemic lockdowns, Ola has turned profitable, helped by aggressive cost cuts and a workforce reduction, the filing with the government showed.

Founded in 2010 by Bhavish Aggarwal, Ola plans to raise up to $1 billion through an initial public offering (IPO) in the next few months, joining a slew of Indian startups preparing to list. But the company is set to lose two top executives, its Chief Financial Officer Swayam Saurabh and Chief Operating Officer Gaurav Porwal.

The firm has also expanded into leasing cars and building electric scooters.

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