IPO · Mobility & Logistics

Ola Consumer board approves IPO process despite losses

What they do

Ola provides ride-hailing and mobility services across India

The board approved the IPO steps after incurring Rs 4.2 crore expenses

Revenue fell 42% to Rs 1,170.9 crore while net loss widened significantly

The board of ANI Technologies approved the proposal for an Initial Public Offering (IPO).
The company commenced necessary steps and incurred Rs 4.2 crore in audit and certification expenses during FY25.
Financial results show revenue dropped 42% to Rs 1,170.9 crore from the previous year.
Net losses widened significantly to Rs 662.4 crore compared to Rs 328.7 crore in FY24.
Cash reserves decreased sharply to Rs 180.3 crore by the end of FY25.
Impairment charges totaled Rs 465.5 crore due to write-downs in used cars and other ventures.
Regulatory challenges include expired aggregator licenses and an RBI inspection of its payment wallet license.
The company is contesting various tax disputes regarding driver incentives and GST credits.

The IPO approval comes as the company faces significant financial headwinds and regulatory scrutiny.
Market share has declined from a peak of 90% to 60-70% over three years.
SoftBank continues to back Ola Consumer despite the challenging financial environment.

Ola operates a ride-hailing platform connecting drivers with passengers across India.
It previously operated food delivery and commerce through ONDC but has wound down these operations.
The business model shifted to a zero-commission framework replacing per-ride cuts with fixed subscriptions.
This new model replaces 15-20% commissions with daily or monthly driver fees.
The company focuses on core ride-hailing after consolidating operations and automating processes.
Restructuring efforts led to free cash flow positivity in the second half of FY26.
Headcount rationalization and operational consolidation were key parts of the restructuring strategy.