Ranges from 15% to 20% depending on the city and type of vehicle. An IPO will help many of the ride-hailing company’s investors, including SoftBank, to exit or partially sell their stakes and return funds to their shareholders. A valuation report submitted to Ola’s shareholders in February 2017 projected that Ola may report a profit of about ₹ 1,170 crore in FY19, with a free cash flow of ₹ 698 crore. Further, on its track for such listing, Ola, on August 29 passed a resolution to allot 16,885 Series J CCPS to ARK Ola Pre IPO Fund at a nominal value of INR 10 with a premium of INR 21,240 to raise INR 36.88 Cr ($5.19 Mn). Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola offers services in more than 110 cities and claims to have over 10 lakh driver-partners across cabs, auto-rickshaws, and taxis on its platform. A company typically sets up a private trust fund to avoid diluting majority control of the main holding company, according to three consultants and valuation experts Mint spoke to. 30 Startups To Watch: The Startups That Caught Our Eye In October 2020, [The Outline By Inc42 Plus] Keeping Up With Startup ESOPs, Fashion, Furniture Brands Grab The VC Limelight In India’s D2C Space. 2020The Indian Express [P] Ltd. All Rights Reserved. Losses for FY18 narrowed to ₹2,676 crore from ₹4,816 crore in the previous year. The product is a monthly auto renewal product. In turn, in FY18 Ola reported a 44% rise in revenue to INR 1,860 Cr from around INR 1,286 Cr in the previous year. Last Updated at November 22, 2017 08:47 IST. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Click here to read the Mint ePaperMint is now on Telegram. Copyright © HT Digital Streams Limited All rights reserved. This is because Indian stock exchanges require companies to be profitable for at least three years before they go public. To be sure, listing in India is not easy. Ola’s domestic IPO plans come at a time when arch-rival Uber’s IPO and NYSE stock performance has been tepid. Rival Uber too, has seen its revenue growing manifold from India business to Rs 21.5 crore in the fiscal ended March 2018. The ARK Ola Pre IPO Fund appears to be a special purpose vehicle, set up to support Ola’s IPO plans. According to the documents filed with the Corporate Affairs Ministry, Ola narrowed its standalone losses significantly to Rs 2,676.7 crore, while revenues were up 44.6 per cent to Rs 1,860.6 crore in FY2018 compared to the previous financial year. “Most of the differences on the IPO listing arose between SoftBank, a new incoming Japanese investor, and Mirae Asset Fund, an existing investor… and hence Mirae has got in ARK as a co-investor in the current round... Another investor, Hyundai, also Korea-based, is pushing for an Ola IPO," said the person. Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. Ola fires 1400 people as revenue is hit by 95% in the last two months. They had a call center which used to do bookings for customers who wanted cabs. Times Internet Limited. Exclusive industry analysis, provocative insights, & deep dives for Inc42 Plus Members. A Livemint report speculated that the fact the Ola is planning for an initial public offering (IPO), it must have turned profitable in FY19. Ola’s promoters, however, contribute less than 20% of the paid-up capital. Revenue and Profits: Ola likes other ride-hailing companies unable to generate profits. The total loss was of around Rs.2311 crore, even though its revenue has increased significantly. Ola, India’s largest ride-hailing start-up, is projected to turn profitable by 2018-19 and rake in $1 billion as profit by 2021, according to an independent agency the company employed to value it. Kindly visit the Manage my subscription page to discover the benefits of this programme. Unlimited access to all content on any device through browser or app. 2,842 crores). It competes with Uber in these markets as well. In the matter of presence Ola is ruling with 110 cities as compared to Uber ruling with 29 cities. “Ola has nothing to do with ARK. In the subsequent two years, profits after tax would grow to Rs 3,326.99 crore and Rs 6,423.33 crore, respectively. ANI Technologies — the entity running Ola — saw its consolidated revenue rising 60.9 per cent to Rs 2,222.6 crore in the fiscal ended March 2018 from Rs 1,380.7 crore in the previous fiscal. Ola, India’s largest ride-hailing start-up, is projected to turn profitable by 2018-19 and rake in $1 billion as profit by 2021, according to an independent agency the company employed to value it. When they started out – They started out as a Taxi Rental Fleet Business (They owned the Fleet). Uber takes around 20 % of the fare charged to the customer, and the rest 80% is given to the driver. The company claims to complete over a billion rides annually with its over 1.5 Mn drivers. In 2018, Ola forayed into international markets like Australia, the UK and New Zealand. Track the industry of your choice with a daily newsletter specific to that Times Syndication Service. The listing plans of Ola contrast with that of other Indian unicorns such as Flipkart and Oyo that are exploring IPOs on the US bourses, as they allow public offerings of loss-making entities too.