Hemant Bakshi Departs from Ola Cabs Leadership

Ola Cabs. (File Photo: IANS)
Preeti Bali / 12:12 pm / May 2, 2024

Hemant Bakshi, who served as the chief executive officer of Ola Cabs, has reportedly resigned from his position within the ride-hailing company. Bakshi assumed the role of CEO in January of this year.

Bakshi’s Background and Contributions at Ola

Bakshi, a former executive at Unilever, played a pivotal role in steering Ola’s mobility business, with a particular emphasis on core sectors such as financial services, logistics, and e-commerce.

Departure Amid Ola’s IPO Preparations

Bakshi’s departure coincides with Ola’s preparations for an initial public offering (IPO), with expectations of the firm submitting a draft IPO document within the next three months.

Layoffs and Operational Changes

In addition to Bakshi’s resignation, Ola is also reportedly planning significant staff reductions, potentially affecting approximately 10% or close to 200 employees, as per a report from Moneycontrol. This move follows a similar downsizing initiative by Ola in January of the previous year, which impacted various verticals including ride-hailing, electric vehicles, and fintech.

Ongoing Developments and Financial Performance

Despite these organizational changes, Ola announced earlier this year that it achieved EBITDA profitability in FY23. Additionally, the company managed to slash its losses by nearly 50%, amounting to Rs 772 crore during FY23 compared to Rs 1,522 crore in FY22. Notably, its revenue surged by 42% to Rs 2,799 crore during the same period, rising from Rs 1,970 crore. However, audited financials for FY24 are pending submission.

Strategic Shifts and International Operations

Recently, Ola disclosed its decision to retract its services from international markets, including the UK, Australia, and New Zealand. This strategic move aligns with the company’s focus on preparing for its IPO.

Industry Landscape and Other High-Profile Exits

Bakshi’s departure marks the third notable exit within India’s startup ecosystem in April. Preceding this, Byju’s India CEO Arjun Mohan resigned earlier in the month, while Surinder Chawla, MD and CEO of Paytm Payments Bank, also parted ways with the fintech company.

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