Ola Consumer turns Ebitda profitable; revenue declines 21% in FY24

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Ola Consumer, which is preparing for an initial public offering (IPO), reported a decline in its revenue from operations and other income for the financial year ending March 2024. The total stood at Rs 2,368 crore across its ride-hailing, financial services, and logistics segments, compared to Rs 3,000 crore in FY23.

 

However, Ola Consumer closed FY24 with full-year Ebitda (earnings before interest, taxes, depreciation, and amortisation) profitability in the mobility and financial services segments. Full-year Ebitda (excluding discontinued operations) grew significantly to Rs 271 crore from Rs 87 crore last year.

 

ANI Technologies standalone (Ola Cabs) total revenue stood at Rs 1,906 crore in FY24, compared to Rs 2,135 crore in FY23.

 

Last year, Ola Cabs rebranded to Ola Consumer to reflect its expansion into new services, including financial services, cloud kitchens, and quick commerce.

 

Growth initiatives

 

Ola Consumer has launched multiple growth initiatives across business verticals. It unveiled premium ride-hailing services such as Prime Plus and has also expanded its two- and three-wheeler ride-hailing services to increase penetration into Tier-II and Tier-III cities.

 

The firm continues to push for electric vehicle (EV) fleets owing to their lower total operating cost and lower pricing to consumers, leading to higher demand and attracting more drivers onto the platform.

 

The platform also launched its rewards programme, Ola Coin, in August 2024. It provides users with incentives on every transaction made on the Ola platform across mobility, e-commerce, and logistics services.

 

The company began pilots to expand into food delivery, groceries, and related commerce segments using the Open Network for Digital Commerce (ONDC) network. Ola currently fulfils over 80 per cent of all last-mile logistics requests on ONDC. It provides last-mile delivery services to its partners on ONDC and plans to offer automated and AI-enabled warehousing as a service to brands.

 

Ola Consumer is also focusing on onboarding sellers to build its catalogue depth on ONDC. Its AI shopping co-pilot will allow users and partners across platforms to experience a cohesive and integrated shopping experience.

 

Expansion in financial services

 

In the area of financial services, the firm unveiled Ola Pay UPI, which uses unified payments interface (UPI) on the Ola Consumer app to pay for rides, food, and groceries.

 

The company further expanded into personal loans under Ola Financial Services, capitalising on its access to low-risk, premium customers through the Ola Consumer platform.