Ola’s mobility business turns profitable; reports Rs 250Cr profit in FY23

Ola's India mobility business has reported a standalone EBITDA profit of Rs 250 crore in FY23, a stark contrast to the Rs 66 crore loss in FY22. 

The profit comes on the back of a substantial 58% revenue growth, reaching Rs 2,135 crore in FY23 from Rs 1,350 crore in FY22.

"This is one of the few consumer internet businesses in India to be profitable at this level. We believe that mobility is largely an underpenetrated category in India currently,” Bhavish Aggarwal, MD, ANI Technologies (Ola’s parent company) said.

The evolution of Ola

Ola's journey began as a pioneer in shared mobility, transforming India's transportation landscape. The company introduced convenient ride-booking through a mobile app, making cabs easily accessible and revolutionizing urban transportation.

Over the years, Ola expanded its services to include autorickshaws, bikes, outstation, and rentals, becoming synonymous with ride-hailing in India.

The company's resilience during the COVID-19 pandemic and operational adjustments has contributed significantly to its current profitable model.

Premiumization, Penetration, and Electrification

Ola's new CEO, Hemant Bakshi, outlined the company's growth strategy focusing on premiumization, penetration, and electrification. Initiatives like Ola Prime Plus aim to offer premium services, targeting the rapidly growing number of affluent consumers in India.

The company also plans to disrupt the mobility space with affordable electric rides, particularly in the two-wheeler segment. These strategies are part of Ola's vision to serve a billion Indian consumers and empower 10 million partners economically.

Focusing on electrification

Ola said that electrification is a key focus with the aim to scale up the two-wheeler ride-hailing industry using electric vehicles.

The company's e-bike taxi service launch in Bangalore also witnessed a notable success. Following this, It also launched this service in Hyderabad and Delhi, with plans to deploy 10,000 electric bikes. 

Business model diversification

Ola is diversifying its business model to include logistics and e-commerce, leveraging its large customer base, financial services, and technology capabilities.

The company's multi-work model and collaboration with ONDC (Open Network for Digital Commerce) are steps towards enhancing its logistics and e-commerce services.

Additionally, Ola is focusing on its asset finance vertical, with plans for bank tie-ups and improved insurance and process experiences for partners and riders.

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