Ola Cabs CEO Hemant Bakshi resigns; company to lay off 10% employees

Hemant Bakshi's exit coincides with company's impending restructuring efforts, poised to impact at least 10 per cent of the workforce

Hemant Bakshi, who served as the CEO of Ola Cabs, the ride-hailing arm of ANI Technologies, has resigned, just four months after assuming the role, reported Moneycontrol, citing sources.

Bakshi's exit coincides with the company's impending restructuring efforts, poised to impact at least 10 per cent of the workforce, the report added.

Bakshi, who assumed the CEO role in January, will immediately vacate his position, leaving the reins to company co-founder Bhavesh Aggarwal, who will oversee day-to-day operations until a new CEO is appointed.

The decision to realign the company's structure emerges at a crucial juncture, shortly after Ola Cabs initiated preliminary discussions with investment banks regarding a potential Initial Public Offering (IPO). 

 

In recent weeks, Ola Cabs has made notable personnel changes, including the appointment of Kartik Gupta as Chief Financial Officer (CFO) and Sidharth Shakdher as Chief Business Officer (CBO).

Meanwhile, Ola Electric, the company's sister company, filed its draft red herring prospectus with the market regulator in December, aiming to raise around Rs 7,250 crore through an IPO, marking the maiden attempt at public listing by an Indian electric vehicle firm.

Established in 2010, Ola Cabs garnered early support from prominent investors such as SoftBank and Tiger Global. However, in response to heightened competition and a strategic pivot towards the Indian market, the company recently shuttered its international operations across certain countries.

In fiscal year 2023, Ola Cabs' Mobility business recorded a revenue of Rs 2,135 crore, marking a nearly 58 per cent increase. Notably, the company achieved a positive EBITDA of Rs 250 crore, a significant turnaround from the Rs 66 crore EBITDA loss reported in FY22.

ANI Technologies, the parent company of Ola Fleet, Ola Financial Services, and Ola Stores, reported a consolidated revenue of Rs 2,799 crore, representing an almost 42 per cent year-on-year growth, despite a decline in revenue from Ola Fleet and Ola Financial Services.