Ola Consumer begins IPO process despite revenue decline and surge in losses

Ride hailing major Ola Consumer (formerly Ola Cabs) has formally initiated preparations for an initial public offering (IPO), according to the company’s FY25 consolidated financial statements reviewed by Entrackr.

ANI Technologies Private Limited, the parent entity of Ola Cabs, said its board has approved the IPO proposal and commenced necessary steps toward the proposed listing. The company also began incurring IPO related expenses during the fiscal year and spent Rs 4.2 crore on audit services and certifications linked to the public issue.

The development comes at a time when the SoftBank-backed company faces slowing business performance, regulatory scrutiny, and restructuring challenges.

In its filings, Ola said management believes the IPO process, along with ongoing cost optimization efforts and available financial resources, will help the company continue as a going concern and meet its financial obligations.

However, the company also disclosed several operational concerns. Ola continues to operate as a cab aggregator in some states where its aggregator licenses have expired. While renewal applications have been submitted, approvals from state authorities are still pending.

Its financial services subsidiary, Ola Financial Services Private Limited, also faced regulatory attention during FY25. The Reserve Bank of India (RBI) inspected the subsidiary’s prepaid payment instruments (PPI) license and later issued observations, to which the company submitted preliminary responses.

The filing further sheds light on multiple business shutdowns and impairment charges. Ola had earlier discontinued its used cars, cloud kitchen, and grocery businesses, which resulted in a goodwill impairment of Rs 146.8 crore.

Another subsidiary, Goddard Technical Solution Private Limited, acquired to strengthen the financial services vertical, underperformed against expectations. The company said it currently lacks a viable business plan for the business, which led to an impairment charge of Rs 318.7 crore in FY24. Ola also suspended operations at certain loss making subsidiaries to reduce cash burn.

Financially, the company witnessed a sharp decline in FY25. Revenue from operations fell 42% to Rs 1,170.9 crore in FY25 from Rs 2,011.9 crore in FY24, while consolidated net loss widened to Rs 662.4 crore from Rs 328.7 crore a year earlier.

Cash reserves also shrank significantly. Cash and cash equivalents stood at Rs 180.3 crore at the end of FY25, down from Rs 374.1 crore a year ago, while bank balances dropped to Rs 472.5 crore from Rs 1,020.7 crore.

In a notable disclosure ahead of the IPO, ANI Technologies reassessed its promoter classification under the Companies Act, 2013, and stated that there was “no promoter” for FY25 despite founder Bhavish Aggarwal holding a majority stake.