In the sequence of events, Hemant Bakshi, who took over the role of Ola Cabs CEO less than 4 months ago, has parted ways with the organization. This follows the recent announcement of a massive restructuring, affecting 10% of the organization’s workforce which means massive job cuts.
Resignation and Leadership Transition
Bakshi, who assumed the CEO position in January, has stepped down immediately. Co-founder Bhavesh Aggarwal is temporarily overseeing day-to-day operations until a replacement is found. This move coincides with the company’s strategic realignment efforts as it gears up for a potential Initial Public Offering (IPO).
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Restructuring Efforts
In this urgent moment, the impetus for overhauling the company comes after a preliminary meeting organized by investment banks on a potential IPO. Ola Cabs’ strategic goal is to streamline operations and strengthen the financial shuttle as per the transfer phase.
Personnel Changes and IPO Plans
Recent weeks have seen significant personnel changes within Ola Cabs, including the appointment of Kartik Gupta as chief financial officer (CFO) and Siddharth Shakdhar as chief business officer (CBO). Additionally, the company’s subsidiary Ola Electric has filed its draft red herring prospectus with the Securities and Exchange Board of India, aiming to raise around INR 7,250 Cr through an IPO, a milestone for Indian electric vehicle companies.
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Financials
In FY23, Ola’s Mobility business registered a revenue of INR 2,135 Cr, an increase of 58% year-on-year (YoY). For the first time in its history, Ola’s EBITDA was positive at INR 250 Cr, after a loss of INR 66 Cr in the previous financial year (FY22). Ola Technologies, which is the parent company of Ola fleet, Ola financial services and Ola stores, reported consolidated revenue of INR 2,799 Cr for the financial year, an increase of 42% from the previous year, although revenues from Ola fleet and Ola financial service decreased.
