Ola CFO Departs Amid Restructuring Efforts for Upcoming IPO

Kartik Gupta, the Chief Financial Officer (CFO) of Ola’s parent company ANI Technologies, has resigned after a brief seven-month tenure. This development comes as Ola undergoes a significant restructuring process in preparation for its initial public offering (IPO).

An Ola spokesperson confirmed the news to Entrackr, stating that Gupta’s departure is part of an ongoing restructuring initiative. The spokesperson emphasized that this restructuring aims to enhance productivity within the company, particularly in light of the evolving artificial intelligence (AI) landscape that is reshaping the global ride-hailing industry. Additionally, the restructuring is expected to fortify Ola’s cost structures, intensify its focus on achieving growth, and ultimately boost the company’s profitability.

Ola Reports Profitability Amid Restructuring for Upcoming IPO

While navigating this restructuring phase, Ola claims to have secured positive financial results for FY23. The company reportedly generated revenue of Rs 1,987 crore, achieved a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 250 crore, and even managed to post a profit before tax of Rs 171 crore.

This news follows the recent departure of Ola’s Chief Executive Officer (CEO), Hemant Bakshi, who stepped down after a mere three months at the helm. In a separate development, Ola has appointed Ankush Aggarwal, brother of Ola founder Bhavish Aggarwal, as the CEO of Ola Financial Services. Ankush will also assume a senior leadership position (CXO) within Ola Cabs, having previously served as the company’s Chief Business Officer (CBO) for Ola Electric. To ensure continuity during this transitional period, Bhavish Aggarwal is expected to take the lead on Ola’s day-to-day operations.

Ola Streamlines for IPO: Exits Markets, Finalizes Book Running Lead Managers

Further emphasizing its focus on achieving growth and profitability, Ola has also made the strategic decision to exit international markets such as the UK, Australia, and New Zealand. These actions suggest a clear focus on streamlining operations as the company gears up for its IPO. Reports indicate that Ola has finalized its book running lead managers, signifying its advanced preparation for the public offering.

Earlier this year, Ola’s valuation was significantly reduced by investor Vanguard, placing the company’s worth at less than $2 billion. This marked the third consecutive valuation markdown by Vanguard since February 2023. At its peak in 2021, Ola boasted a valuation of around $7.3 billion.