Ola Financial Services aims to expand its insurance business overseas

Ola Financial Services (OFS), a subsidiary of Ola is looking to expand its insurance business internationally to support the company's mobility service through products designed for the UK and Australia and New Zealand (ANZ) markets.

Ola's parent company ANI Technologies said OFS had a turbulent year (FY21) with the impact of external factors on the lending environment in general and the double impact on mobility business and its spillover to the OlaMoney brand.

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"OFS successfully managed to control its risk and limit its exposure to the worsening credit environment by taking proactive steps to reduce risk," ANI Technologies said in a regulatory document filed with the Registrar of Companies (RoC).

OFS launched a slew of new products and capabilities in both the lending and insurance businesses and further deepened its partnerships with the leading merchants in the ecosystem, it added. Ola did not respond to emailed queries.

"OFS will be expanding the insurance business internationally to support the operations of the mobility business through innovative insurance products designed for the UK and ANZ markets.

"OFS will be launching new capabilities to the 'pay later' instrument to make it more appealing to the target audience," the filing said.

OFS is expanding its suite of products by launching new lending offerings in the form of two-wheeler, four-wheeler and personal loans to offer a comprehensive financial product ecosystem to the customer, it added.

"Through these growth avenues, OFS will generate regular and sustainable financial results and will have a positive impact on your customers, stakeholders and the ecosystem," the filing noted.

Like many other sectors, ride-hailing businesses were also adversely impacted by the COVID-19 pandemic that confined people within their homes. With offices shut and minimal people like frontline workers being allowed to travel, cab aggregators saw their revenues declining sharply last year.

Ola reported its first operating profit of Rs 89.82 crore for 2020-21 on a standalone basis (ride hailing business), while revenue declined 65 per cent to Rs 689.61 crore amid COVID-19 induced lockdowns.

On a consolidated basis (including food delivery and financial services business), ANI Technologies' operational loss narrowed to Rs 429.20 crore in FY21, while revenue declined 63 per cent to Rs 983.15 crore.