Ola net loss accumulates to Rs 4,898 crore
India’s most popular cab aggregator, Ola’s net loss has widened to Rs 4,898 crore compared to Rs 3,148 crore for the same period during the Financial year 2016, according to a regulatory filing with the Ministry of Corporate Affairs.
This means that Ola lost Rs. 4 for every rupee earned in revenue for FY 17.
Ola is in loggerheads with its U.S. bases nemesis, Uber Technologies Inc. since its inception. Apparently, both the companies have burnt a hole in their pocket over the years to get an upper hand in the Indian market.
Former IITians Bhavish Aggarwal and Ankit Bhati are the founders of the Ola Cabs. Ola is spread across 110 cities.
In order to make its services more accessible, Ola has also registered several auto-rickshaws and motorcycles under its domain. The company also made its international debut in Australia this year.
Ola also aims to inscribe 10,000 electric vehicles over the period of next 12 months under its ‘Mission Electric’ programme.
In October last year, Ola managed to bag $1.5 billion in funding from international investors like China’s Tencent Holdings Ltd and Japan’s SoftBank.
The company aims to extensively diversify with the help of this funding. It aims to tap people belonging to all the classes in the Indian market with the advent of smart cities and new electric vehicle policy.
Ola hired Jain Ambavat and Associates, an audit firm for its valuation last year. It estimated that the company would bear the net loss of Rs. 2,998 crore in FY17. It also predicted a staggering profit of as much as Rs. 5,996 crore by March 2021.
According to sources, Uber has also been suffering from huge losses. Clearly, both the companies will leave no stone unturned to turn their towering losses into profit and conquer the Indian market.