Ola Cabs CEO resigns, company to axe 10% of workforce
Ola Cabs CEO resigns, company to axe 10% of workforce
29 Apr 2024
Hemant Bakshi, the CEO of popular ride-hailing service Ola Cabs, has stepped down from his position.
This development comes amid a significant restructuring process within the company.
Bakshi's resignation is effective immediately, just four months after he assumed the role.
Co-founder Bhavish Aggarwal takes over
Management shift
Bhavish Aggarwal, co-founder and Managing Director of Ola Cabs, will now oversee the company's daily operations following Bakshi's departure.
In an internal email to staff, Aggarwal stated that the company is "undergoing a restructuring exercise aimed at improving profitability and preparing ourselves for the next phase of growth...certain roles within the company will get redundant."
The search for a suitable replacement for Bakshi is currently underway.
Ola Cabs prepares for IPO
IPO preparations
Ola Cabs has started preliminary discussions with investment banks for an upcoming IPO, as reported by Moneycontrol.
This news follows the recent addition of several new members to the Ola team, including Kartik Gupta as CFO and Sidharth Shakdher as CBO.
Meanwhile, Bakshi is said to be "moving out of Ola to pursue interests and opportunities outside of the company," according to a reliable source.
Ola Cabs reports revenue growth
Financial performance
Despite recent challenges, Ola Cabs' mobility business reported a revenue of ₹2,135 crore in FY23, marking an increase of nearly 58%.
For the first time, it clocked a positive EBITDA of ₹250 crore.
Parent company ANI Technologies also reported a consolidated revenue of ₹2,799 crore, reflecting a year-on-year growth of nearly 42%.
This financial performance comes as the company prepares for its IPO and undergoes significant restructuring.
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