After four months as the CEO of India’s biggest ride-sharing transportation company, OLA, Hemant Bakshi has now stepped down. Moreover, the company is said to be performing a restructuring exercise that will affect about 10% of the total staff. Bakshi joined the company in January to supervise the day-to-day operations of the ride-hailing company.
According to MoneyControl, they supposedly saw a message sent by Bhavish Agarwal, co-founder of Ola, to other employees who said, “We have made substantial investments in the areas of AI & Technology which have led to significant cost advantages…certain roles within the company will get redundant.”
Moreover, a source told the news firm that “Ola Cabs’ CEO Hemant Bakshi would be moving out of Ola to pursue interests and opportunities outside of the company.” The source also mentioned that a new CEO will be appointed soon, and until then, Bhavish Agarwal will take care of the day-to-day operations. This resignation has come at odd timing as OLA is amidst preliminary discussions with investment banks for an IPO, which can severely affect their position.
OLA was founded in 2010 and has since been the premiere ride-sharing transportation company in the country. They recently shut down their international business due to increasing competition in unchartered territories. The change in CEO can severely affect the company’s IPO aspirations. However, the company’s financial metrics might just be able to save it.
In FY 23, OLA reported around Rs. 2,135 crore in revenue, a 58% increase from the previous year’s revenue. Moreover, the company also saw a positive EBITDA of Rs. 250 crore. Notably, the company filed its DRHP with market regulators in December and wants to raise Rs. 7,250.
