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April 29, 2024

Ola Cabs CEO Hemant Bakshi Steps Down; Company Plans Layoffs Amidst Restructuring

Ola Cabs, the ride-hailing giant under ANI Technologies, is undergoing significant changes as CEO, Hemant Bakshi, steps down from his position just four months after taking the helm. His departure aligns with the company’s plans for a substantial restructuring that is expected to affect about 10% of its workforce, according to sources cited by Moneycontrol.

Bakshi, who assumed the CEO role in January, is relinquishing his position immediately. Bhavesh Aggarwal, co-founder of Ola, will take charge of day-to-day operations until a new CEO is appointed.

The decision to restructure comes at a crucial time, coinciding with Ola’s discussions with investment banks about a potential Initial Public Offering (IPO). Recent weeks have seen notable personnel changes within the company, including the appointments of Kartik Gupta as Chief Financial Officer (CFO) and Sidharth Shakdher as Chief Business Officer (CBO).

On another front, Ola Electric, the company’s sister concern, filed its draft red herring prospectus with the market regulator in December. It aims to raise approximately Rs 7,250 crore through an IPO, marking a significant milestone as the first Indian electric vehicle firm to go public.

Founded in 2010, Ola Cabs initially garnered support from major investors like SoftBank and Tiger Global. However, facing stiff competition and a strategic shift towards focusing on the Indian market, the company recently closed its international operations in certain countries.

In fiscal year 2023, Ola Cabs’ Mobility business recorded a revenue of Rs 2,135 crore, marking a nearly 58% increase from the previous year. Notably, the company achieved a positive EBITDA of Rs 250 crore, a significant turnaround from the Rs 66 crore EBITDA loss reported in FY22.

ANI Technologies, the parent company of Ola Fleet, Ola Financial Services, and Ola Stores, reported a consolidated revenue of Rs 2,799 crore, representing an almost 42% year-on-year growth, despite a decline in revenue from Ola Fleet and Ola Financial Services.

Jhumpa Lahiri

Jhumpa Lahiri

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