Ola’s Parent Company Reports Increased Loss Despite Higher Revenue in FY22
- ByStartupStory | August 10, 2023
ANI Technologies, the parent company behind ride-hailing giant Ola, announced a widened loss for the financial year ending March 2022 despite nearly doubling its revenue compared to the previous fiscal year. The company reported a consolidated loss of Rs 1,522.33 crore in FY22, up from a loss of Rs 1,116.61 crore in the prior year. However, its total income saw a substantial 81.5% increase to Rs 2,119.95 crore.
The revenue generated by Ola’s ride-hailing business, categorized as ‘sale of services,’ rose by 61.3% in FY22 and contributed to a little over 37% of the total operating revenue. ANI Technologies also earned income through marketing fees, data charges, and subscription earnings. Despite the rise in revenue, the increased expenses incurred by the company offset the gains. Ola reported a total expense of Rs 3,362.13 crore, marking a 67.5% increase from the previous year. Costs linked to vehicle operations and promotional advertising, classified as ‘other expenses in the financial statement, almost doubled compared to the prior year. The ‘miscellaneous expenses’ category, covering payment gateway charges, delivery costs, workshop expenses, and manpower supply charges, increased by 79% to Rs 401.29 crore.
In contrast, Uber’s India business displayed an improvement in its net loss for FY22. It reported a net loss of Rs 216 crore, a decrease from Rs 333.9 crore in FY21. Total revenue for Uber reached Rs 560.52 crore, a 4% rise in FY22, with expenses showing a significant 13.4% decline.
Ola recently faced a valuation decrease when US investor Vanguard devalued its stake in the company by over 50%. Vanguard adjusted its holding’s valuation to $25 million, down from the previous $51.7 million. Other unicorn startups, including BYJU’S, Meesho, Pharmeasy, and Swiggy, have also experienced similar valuation downgrades by investors.
Despite challenges, Ola’s major shareholder, SoftBank, announced plans to reinvest through its Vision Fund, targeting shares in Indian unicorns like Swiggy, Lenskart, FirstCry, and OfBusiness once they go public. While Ola postponed its IPO plans in 2021 due to unfavorable economic conditions stemming from the COVID-19 pandemic, its subsidiary Ola Electric is preparing for a $10 billion IPO and has secured investment banks for the process.
ANI Technologies disclosed its FY 2022 results after a delay of more than a year, following a trend among other startup unicorns like BYJU’S.
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