Indian ride-hailing company Ola, backed by Japan’s Softbank group, has made its first operating profit since it opened a decade ago, company documents showed on Tuesday.
Ola, which holds a majority stake in the Indian ride-hailing market where it competes with Uber Technologies, has a growing presence in several global markets such as Australia and the UK.
Ola reported a standalone operating profit or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of Rs 89.82 billion for the fiscal year ended March 2021, compared to a loss of 610 billion.
Despite a 65 percent year-over-year revenue decline following a drop in demand for ridesharing amid pandemic lockdowns, Ola has turned profitable, aided by aggressive cost cuts and downsizing, the government filing showed.
Ola was founded by Bhavish Aggarwal in 2010 and plans to raise up to 1 billion US dollars (approx.
However, the company will lose two top executives, its CFO Swayam Saurabh and chief operating officer Gaurav Porwal, Reuters reported.
The company has also expanded into car leasing and electric scooter construction.
© Thomson Reuters 2021