Ola's Fiscal Rollercoaster, Rs 250 Crore Profit Zooms In After Rs 66 Crore Setback in FY22
Ola's Multi-City Prime Plus and Luxe Rides Set to Redefine Mobility
25 January 2024
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Kunal Tyagi
Ola, the Indian ride-hailing giant, reported a remarkable turnaround, achieving a standalone profit of Rs 250 crore in FY23, rebounding from a Rs 66 crore loss in FY22.
Under CEO Hemant Bakshi's leadership, Ola's growth strategy revolves around premiumisation, penetration, and electrification, with a focus on collaboration and scalability, evident in the introduction of Ola Prime Plus.
Ola's ambitious plans include multi-city Prime Plus expansion, leveraging electrification for affordable two-wheeler rides, and a strategic approach to asset finance, logistics, and e-commerce through partnerships and the Open Network for Digital Commerce (ONDC).
In a surprising twist of events, Ola, the Indian ride-hailing giant, reported a standalone profit of Rs 250 crore in the fiscal year 2023, marking a significant rebound from the Rs 66 crore loss in the previous fiscal year. This achievement is complemented by a robust 58% growth in revenue, reaching Rs 2,135 crore in FY23, compared to Rs 1,350 crore in FY22. Bhavish Aggarwal, the founder of Ola's parent company ANI Technologies, attributes this success to a strategic focus on profitable growth, making Ola one of the few profitable consumer internet businesses in India.
Under the leadership of the newly appointed CEO, Hemant Bakshi, Ola is gearing up for its next phase of growth with three key pillars: premiumisation, penetration, and electrification. Bakshi emphasizes Ola's openness to collaboration, expressing the company's willingness to buy and sell to competitors to achieve scalability. The introduction of Ola Prime Plus, a premium offering, is poised to align with the expected rapid growth of affluent households in India, reaching 13 million by 2030.
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Aggarwal also outlined Ola's ambitious plans for expansion, including the introduction of a multi-city Prime Plus experience with a loyalty program and luxury cars. The company aims to disrupt the mobility space by leveraging electrification to provide the most affordable rides in the two-wheeler segment. This move is expected to offer a competitive edge by providing added benefits to both partners and riders.
Furthermore, Ola plans to bolster its asset finance vertical through bank tie-ups, enhanced insurance offerings, and an improved overall experience for partners and riders. The company envisions a multi-work model, combining logistics, e-commerce, and financial services to leverage the Open Network for Digital Commerce (ONDC). This strategic move is designed to capitalize on Ola's extensive customer base, financial service offerings, gig-worker platform, and technological capabilities.
While Ola Mobility business in India reported a commendable operational profit of Rs 250 crore in FY23, ANI Technologies, at the group level, reported a narrowing of operational loss to Rs 29 crore in FY23 from Rs 291 crore in FY22. However, it's important to note that the consolidated net loss for ANI Technologies still stands at Rs 772.25 crore in FY23. Despite this, the company remains optimistic about its trajectory, backed by total funding of about Rs 31,441 crore and a strategic focus on profitable growth and innovative offerings in the rapidly evolving mobility sector.
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