Ola parent narrows FY23 loss even as financial services vertical's revenue declines
Bhavish Aggarwal-led ANI Technologies, the parent company of Ola, managed to reduce its losses in FY23, especially as revenue showed solid growth.
ANI Technologies, the parent company of , said its standalone loss in fiscal year 2023 narrowed by nearly 65%, coming in at Rs 1,082.56 crore.
In FY22, ANI Technologies—the parent company of Ola Financial, Ola Fleet, and Ola Stores—recorded a loss of Rs 3,082.42 crore, on a standalone basis. Its revenue rose 62.9% to Rs 1,987.54 crore in FY23 from Rs 1,220.29 crore a year ago.
On an audited consolidated basis, ANI Technologies posted a loss of Rs 772.25 crore and revenue of Rs 2,799.38 crore.
Ola's rival India, on the other hand, said its FY23 losses widened by 58%, mostly on the back of rising expenses. Its operating revenue rose 54.4% to Rs 2,666.1 crore.
Ola Financial—which operates Ola Money—swung to a loss in FY23 at Rs 54.64 crore, after posting a profit of Rs 8.68 crore the previous year. Its revenue also declined 22%.
It's noteworthy that Ola Financial's growth was driven by its buy now, pay later (BNPL) product in 2022, which had to shut down after the Reserve Bank of India released its digital lending guidelines.
The company's ride-hailing platform, Ola Fleet, narrowed its losses to Rs 387.64 crore in FY23 from Rs 467.99 crore the previous year.
Despite facing stiff competition from Uber in India, the company has managed to retain the top position in the ride-hailing category. However, with the likes of joining the fray, the going will get tougher for the Bengaluru-based company.
The company's woes have been further exacerbated by a string of high-profile exits in the last couple of years, including Co-founder Ankit Bhati who parted ways in 2020.
Ola's IPO-bound sister company, EV manufacturer , saw two senior-level executives exit last year.
Questions were also raised about the company's path to profitability, more so after investor Vanguard cut the valuation of its stake in the ride-hailing giant.
(Disclaimer: YourStory CEO and Founder Shradha Sharma is on the board of Ola Electric.)
Edited by Suman Singh