Ola Cabs CEO Hemant Bakshi has resigned from his position, marking an unexpected departure merely four months into the role, reported Moneycontrol.com.
The ride-hailing arm of ANI Technologies is reportedly gearing up for a restructuring initiative that is anticipated to impact approximately 10% of its workforce or 200 employees, added the report quoting sources familiar with the matter.
Bakshi’s resignation, effective immediately, follows his appointment to the company in January to oversee day-to-day operations.
A source quoted in the report said Bhavesh Aggarwal, the co-founder of Ola, will assume responsibility for day-to-day operations following Bakshi’s resignation. “There will be a new appointment soon,” the source quoted in the report said.
The announcement comes amidst Ola Cabs’ preliminary discussions with investment banks regarding a potential initial public offering (IPO).
In recent weeks, Ola Cabs has undergone a series of leadership changes, appointing Kartik Gupta as Chief Financial Officer (CFO) and Sidharth Shakdher as Chief Business Officer (CBO).
Additionally, Ola Electric submitted its draft red herring prospectus to the market regulator in December, aiming to raise approximately Rs 7,250 crore through an IPO, marking a significant milestone as the first Indian electric vehicle firm to pursue a public listing.
Established in 2010, Ola Cabs garnered early support from prominent investors such as SoftBank and Tiger Global.
However, in response to escalating competition, government initiatives promoting fleet electrification, and a strategic focus on the Indian market, Ola Cabs recently halted its international operations in select countries.
Despite encountering significant challenges, Ola’s Mobility business demonstrated a robust performance in the fiscal year 2022-23, registering a notable revenue of Rs 2,135 crore. This marked an impressive surge of nearly 58 percent compared to the previous fiscal year.
Moreover, the company achieved a noteworthy positive EBITDA of Rs 250 crore, representing a remarkable turnaround from the EBITDA loss of Rs 66 crore reported in FY22.
Meanwhile, ANI Technologies, the parent entity of Ola Cabs, comprising Ola Fleet, Ola Financial Services, and Ola Stores, reported consolidated revenue of Rs 2,799 crore for FY23.
This indicated a year-on-year growth of nearly 42%, despite facing a decline in revenue from the Ola Fleet and Ola Financial Service divisions.
