Ola’s mobility business reports Rs 250-cr profit in FY23 after Rs 66-cr loss in FY22

Ola’s founder Bhavish Aggarwal on Thursday said that the company’s India mobility business reported a standalone profit of Rs 250 crore in FY23 after a loss of Rs 66 crore in FY22. The company’s revenue grew 58% to Rs 2,135 crore in FY23 from Rs 1,350 crore in FY22. 

“In FY23 we challenged ourselves to not just grow and scale, but to do this profitably. While our revenue continued to grow at a strong clip of 58%, we became EBITDA positive in the India mobility business. This is one of the few consumer internet businesses in India to be profitable at this level. We believe that mobility is largely an underpenetrated category in India currently,” Bhavish Aggarwal, MD, ANI Technologies (Ola’s parent company) said. 

Ola’s new CEO Hemant Bakshi who joined the company after more than 15 years with Unilever, highlighted the company’s three pillars of growth in mobility: premiumisation, penetration, nd electrification. “These would be our focus areas going forward. We are open to selling and buying from our competitors also if they’re willing to build at scale. We’re also betting on Ola Prime Plus which will help us achieve our premiumisation goals. Number of affluent consumers will grow rapidly, it is estimated that the total number of affluent households in India (annual income > Rs 20 lakhs) will grow by 13 million by 2030. These consumers will expect a step jump in the quality of services offered to them - no different from any other part of the world,” Hemant Bakshi, CEO, Ola Mobility said. 

Aggarwal also said that that the company plans to further expand multi-city Prime plus experience with a loyalty program and luxury cars on the anvil. “On top of that, we want to leverage electrification to disrupt mobility space by offering the most affordable rides in the 2W segment, priced lower than the industry, offering more benefits to the partners,” he adds.  

The company will also see an increased focus on asset finance vertical with bank tie-ups, better insurance and process experience, with a focus on partners and riders.  “As a part of developing our logistics and e-commerce offering, we have devised a multi-work model combined with the company’s large customer base, financial services offerings, our gig-worker platform and technology capabilities to leverage ONDC,” Bakshi adds.