Ola Cab's Chief Financial Officer Kartik Gupta has stepped down from the company, a spokesperson said on Thursday, attributing the departure to ongoing restructuring. The restructuring will allow Ola to strengthen cost structures, focus on growth and increase its net profit, the spokesperson said.
Moneycontrol reported the development first.
Gupta's exit comes barely two weeks after Chief Executive Officer Hemant Bakshi also stepped down from his role at the helm. The mobility giant is undergoing a restructuring, aimed at improving profitability, in which it also laid off 10% staff.
The company attributed all the recent exits to "productivity enhancement in an AI-led era, that is redefining the cab-hailing industry globally".
The developments also come as Bhavish Aggarwal-founded Ola Cabs plans for a $500 million initial public offering, with a valuation of $5 billion.
The SoftBank-backed ride-hailing platform is in talks with bankers for the initial share sale and plans to appoint the lead bankers in the next 2-3 weeks after the formal pitch, NDTV Profit had reported earlier. Sister company Ola Electric is also looking to list this year, with its papers already filed with the markets regulator.
In December last year, Ola Cabs had said it is reorganising into three business units—ride hailing and mobility, financial services, and logistics and e-commerce—to "allow focused management, streamlined operations, and more agility."
Ola also said its mobility business hit Ebitda-level profitability in FY23.
ANI Technologies Pvt.'s standalone earnings, which take into account only Ola's mobility business, posted "segment-adjusted" earnings before interest, taxes, depreciation and amortisation of about Rs 250 crore, the company had then said. "We're one of the few consumer internet businesses in India to be profitable at this level."
However, NDTV Profit reported earlier that the company's ride-hailing business posted a revenue rise of Rs 1,987.5 crore from Rs 1,220.2 crore in fiscal 2022. Loss from the business narrowed significantly to Rs 1,082 crore from Rs 3,082 crore.
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