Hemant Bakshi, the CEO of Ola Cabs, the ride-hailing division of ANI Technologies, has resigned just four months after assuming the position. This departure comes amidst plans for a restructuring initiative within the company, which is expected to impact at least 10 percent of the workforce, according to a report by Moneycontrol.
Bakshi, whose resignation took immediate effect, joined the ride-hailing company in January. Bakshi joined the firm to take care of day-to-day operations.
“With this restructuring, certain roles within the organization will be rendered redundant and could impact as much as 10% of the workforce,” a source told Moneycontrol.
“Ola Cabs’ CEO Hemant Bakshi would be moving out of Ola to pursue interests and opportunities outside of the company…Aggarwal will be looking after and there will be a new appointment soon,” a source told Moneycontrol.
Ola cab IPO
The announcement follows shortly after Ola Cabs commenced initial talks with investment banks about an IPO.
The ride-hailing company is considering the possibility of launching an initial public offering.
Established in 2010, Ola Cabs quickly secured support from notable investors such as SoftBank and Tiger Global.
In light of intensifying competition, government mandates for fleet electrification, and a strategic shift towards the Indian market, Ola Cabs has recently ceased its international operations in select countries.
“We’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form in the UK, Australia and New Zealand. We remain very excited and focused on our mission to serve 1 Billion Indians,” the firm responded in a statement to Moneycontrol’s queries.
Ola Earnings
In FY23, Ola’s Mobility business saw a revenue increase of almost 58 percent, reaching Rs 2,135 crore. Significantly, the firm achieved a positive EBITDA of Rs 250 crore for the first time, a notable turnaround from the Rs 66 crore EBITDA loss reported in FY22.
ANI Technologies, the parent organisation encompassing Ola Fleet, Ola Financial Services, and Ola Stores, disclosed a consolidated revenue of Rs 2,799 crore in FY23, marking a nearly 42 percent year-on-year (YoY) increase. This growth was achieved despite a decline in revenue from Ola Fleet and Ola Financial Services during the same period.
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