Ola Consumer, the ride-hailing arm of the Ola Group, reported a steep 101.5% increase in its net loss for FY25 to ₹662.4 Cr from ₹328.7 Cr in the previous fiscal year.
The company, formerly known as Ola Cabs, filed its annual financial statement earlier this week, over six months after the filing deadline.
Once India's top ride-hailing application, Ola Consumer saw its operating revenue decline 41.8% to ₹1,170.9 Cr in FY25 from ₹2,011.9 Cr in the previous year. Its main income source was the sale of services, including commission income and convenience fees, which fell 41% YoY to ₹1,093.4 Cr.
Including other income, total income during the year under review declined to ₹1,368.9 Cr. Other income comprised profit from mutual fund portfolio, interest income from bank deposits, security deposits, income tax refunds and loans given to related parties.
It is pertinent to mention that Ola Consumers' board, in September last year, approved a proposal to go public. The company accounted ₹18.8 Cr as a prepaid expense for the IPO process in FY25.
If the IPO materialises, Ola Consumer will become the second company founded by Bhavish Aggarwal to go public. His electric two-wheeler manufacturer Ola Electric made its public market debut in August 2024.
Ola Consumer had reported a 57.5% decline in its consolidated net loss in FY24, most of which was attributable to a 42% decline in employee benefit costs. The company has fallen behind ride-hailing peers like Uber and Rapido in recent years despite being an early mover in the segment.
Its accumulated losses stood ₹21,212.6 Cr at the end of FY25, along with debt obligations of over ₹586 Cr. However, the company noted that it has adequate liquidity to meet its debt obligations, operational expenses, and capital expenditure requirements. Additionally, it is also taking cost optimisation initiatives to reduce operating expenses to improve cash flows.
In its report, Ola's board of directors outlined the steps taken by the company in FY25 to improve its operational efficiency. This included:
- Introduction of subscription model for two- and three-wheeler services to drive recurring revenue and improve customer retention
- Coin rewards programme to incentivise transactions across mobility, ecommerce and logistics
- Expanding two-wheeler ride hailing services to Tier II and III cities
- Electrification of fleet to improve operating costs and improve pricing for customers
- Growth of Ola Credit in preparation to launch personal loan offerings in partnership with financial institutions
- Manpower optimisation, including layoffs and leadership restructuring
Apart from the ride-hailing arm, Ola Consumer comprises 16 subsidiaries, including electric two-wheeler leasing and logistics service provider Ola Fleet Technologies, payments and insurance distribution arm Ola Financial Services, Ola Stores for providing buyer finding services to ONDC participants, and its foreign businesses. In recent years, it shuttered its car leasing and food delivery businesses.
Where Did Ola Consumer Spend?
The company's total expenses during the year stood at ₹2,038 Cr, down a nominal 3.2% from ₹2,107 Cr spent in FY24.
Employee Benefit Expenses: Ola Consumer's expenses under this head declined 38.5% during the year under review to ₹205.2 Cr from ₹333.8 Cr in FY24. The company fired 10% of its workforce, or 200 employees, in April 2024.
Marketing Expenses: Marketing and advertising expenses surged 117.9% to ₹233.2 Cr in FY25 from ₹107 Cr in FY24.
Driver-Related Expenses: The expenses under this head declined 34% to ₹401 Cr from ₹607.6 in the previous fiscal year.
Technology Cost: Ola Consumer spent ₹303.6 Cr on its technology needs, up 8.4% from ₹280.2 Cr in FY24.