Online app & ride hailing giant OLA is planning for to come out with an Initial public offering (IPO) within next 1.5 – 2 years in India on NSE and BSE. Ola Cabs founder and CEO has also previously told business line that though they are planning for IPO, the details of the IPO have not been decided yet.
The IPO will also be an opportunity for selling and exiting investors like Softbank with stake reduction partial and getting returns on his investment.
As per Indian local exchanges conditions, companies are required to be profitable for atleast three years before announcing the IPOs and taking the step further OLA has already achieved its profitability target in Mar 2019.
Ola is also planning to reduce its employee strength by 15-20% over next 6 months to improve margins ahead of IPO. Over the past year-and-a-half, the company already cut its tech team to 150-200 people from 800 and has reduced employee expense to Rs. 414 Cr. from Rs. 495 Cr.
Meanwhile, the cab aggregator’s latest investor, ARK Impact Asset Management had set up a pre-IPO trust fund recently, as per ANI Technologies Pvt Ltd filings with the corporate affairs ministry last month. The company is the operator of Ola.
Ola had reported a 44% jump in its revenue to Rs 1,860 Cr. in FY18 (2017-18) from nearly Rs 1,286 Cr. in FY17 (2016-17). However, FY 2019 results are yet to be filed by the operator with MCA (Ministry of Corporate Affairs).
The current valuation of company is around $6 billion.