Ola's losses widen to Rs 4,898 cr in FY'17
Ola, which is locked in a bruising battle for market leadership in the Indian market against American rival Uber, had registered a loss of Rs 3,147.9 crore in FY2015-16. During the same period, ANI Technologies -- the entity running Ola -- saw its consolidated total income rising over 70 per cent to Rs 1,380.7 crore as against Rs 810.7 crore in FY2015-16, as per documents filed with Registrar of Companies (RoC).
Ride hailing app Ola saw its losses widening to Rs 4,897.8 crore, even though its total income grew 70 per cent during FY2016-17 as compared to the previous fiscal, as per regulatory documents.
Ola, which is locked in a bruising battle for market leadership in the Indian market against American rival Uber, had registered a loss of Rs 3,147.9 crore in FY2015-16.
During the same period, ANI Technologies -- the entity running Ola -- saw its consolidated total income rising over 70 per cent to Rs 1,380.7 crore as against Rs 810.7 crore in FY2015-16, as per documents filed with Registrar of Companies (RoC).
Emails sent to Ola did not elicit a response.
"A one-time loss of about Rs 1,000 crore makes the results look worse than they would be on an ongoing basis. In line with results from e-commerce firms, advertising expenses shrunk by 35 per cent," Anchal Agarwal, co-founder of research firm Tofler, said.
As per the documents, sourced by Tofler, Ola incurred a one-time loss on account of "modification of financial instrument" to the tune of Rs 1,095.3 crore in FY17.
The company also saw its employee-related expenses growing about 24 per cent to Rs 572.1 crore, while finance costs escalated to Rs 28.7 crore in FY17.
Ola's subsidiaries and include Ola Fleet Technologies (leasing business), Zipcash Card Service (payments), Ola Electric Mobility and Ola Skilling.
WATCH THIS ZEE BUSINESS VIDEO HERE
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.
Earlier this year, it forayed into the Australian market and now offers services in cities including Perth, Sydney and Melbourne. There too, the company competes with Uber.
Interestingly, both the companies have SoftBank as a common investor.
The two rivals also compete in the food delivery space in India. Last year, Ola acquired Foodpanda in December 2017 to take on UberEATS in the Indian market.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
05:07 PM IST