Electric vehicle (EV) maker Ola Electric has reportedly signed an agreement to raise $140 in a funding round led by Singapore’s sovereign wealth fund Temasek with participation from other existing investors.

Sources told Livemint that the agreement was inked on Monday (September 4) and the amount would be credited into the EV major’s account within four to five days. As per the report, Temasek will invest $90 Mn while the remaining $50 Mn will be pumped by remaining investors, primarily comprising family offices. 

The round reportedly pegs Ola Electric at a valuation of $5.4 to $5.5 Bn. This is higher than the company’s last funding round in January 2022 when the EV maker raised around $200 Mn from a clutch of investors at a valuation of $5Bn. 

A person familiar with the development told the publication that the capital will give the company more runway and ‘an additional buffer’ as it prepares for its much-touted public listing. 

A source reportedly also said that the EV maker will likely raise another round before the public markets debut. This comes days after reports surfaced that Ola Electric was looking to raise $350 Mn ahead of its initial public offering (IPO) in a round led by Temasek.

The fresh capital will give the company more heft as it lines up more investors for its potential listing early next year. The capital could also be deployed to scale up the production of its recently announced long line-up of electric scooters, bikes and a potential electric car. 

The announcement comes at a time when the EV original equipment manufacturer (OEM) has been grappling with losses. The company saw its net loss surge almost 4X to INR 784.1 Cr in the financial year 2021-22 (FY22) compared to INR 199.2 Cr in FY21. The numbers are not comparable as the company only began delivering its EV scooters in December 2021. 

The company is yet to disclose its financial numbers for FY23, but, if reports are to be believed, it raked up a loss of INR 1,116 Cr ($136 Mn) against revenue of INR 2,750 Cr ($335 Mn), missing its targets for the fiscal year. 

As Ola Electric lines up investment banks for its purported 2024 IPO, the company has been mired in multiple issues, with losses being the least of its problems. The EV maker’s escooters have been involved in fires while top-level executives have been leaving in droves amid a leadership reshuffle. 

Alongside, expenses continue to pile up as Ola Electric continues to scale up its ambitious plans of setting up factories even as sales numbers dwindle in the aftermath of the FAME-II crisis. On top of that, the company has also fired many employees in the past one year as part of a cost-cutting exercise at the parent company. 

However, Ola Electric seems to be well-placed to capture the growth momentum of the Indian EV space, which has grown steadily lately on the back of higher adoption among the masses and government incentives. 

The post IPO-Bound Ola Electric Bags $140 Mn At $5.4 Bn Valuation From Temasek, Others appeared first on Inc42 Media.

As OYO gears up for its anticipated IPO, the company has seen the departure of key executives. Ankit Gupta, OYO’s India CEO, and Mandar Vaidya, the head of OYO Europe, have both opted to leave the hospitality and travel tech unicorn.

“Ankit Gupta and Mandar Vaidya moved on from their roles six months ago (in March 2023). We are proud of their achievements at OYO and are thankful for their leadership,” an OYO spokesperson told Inc42.

The traveltech unicorn elevated Gupta as CEO of India from his position of CEO, Hotels and Homes -India, last year. On the other hand, Vaidya assumed the role of Europe CEO in 2021.

“Both roles were already transitioned 6 months ago to Varun Jain, as COO India, and, Gautam Swaroop, as CEO OYO Vacation Homes, respectively,” the spokesperson added.

Earlier this year, the hospitality unicorn underwent a major management reshuffle, which included assigning additional responsibilities to founder Ritesh Agarwal’s core team. As part of the rejig, OYO International CEO Gautam Swaroop took over allied businesses at OYO, including Weddingz. The company also changed the role of COO Abhinav Sinha to chief product and technology officer.

Late last year, market regulator SEBI asked OYO to refile its draft red herring prospectus (DRHP) by updating all relevant sections, such as risk factors, KPIs, and outstanding litigations, after the company submitted its financial results for the first half of FY23 by filing an addendum.

OYO first filed DRHP for IPO in September 2021, initially aiming to raise INR 8,430 Cr ($1.2 Bn). However, it later took the confidential route to pre-file its draft documents and cut the IPO size to $400 Mn – $600 Mn (INR 3,286 Cr – INR 4,929 Cr).

In an internal town hall in July, Oravel Stays Ltd, the parent entity of hospitality chain OYO, claimed that it registered an adjusted EBITDA of about INR 175 Cr in the first quarter of the financial year 2023-2024 (FY24).

“Our Q1 adjusted EBITDA of around INR 175 Cr makes it an exciting start to the year. If you annualise this outcome, it sets us up for INR 700 Cr adjusted EBITDA this financial year, though, in all likelihood, we will achieve or probably surpass our previously stated target of INR 800 Cr,” OYO founder and CEO Ritesh Agarwal told the employees.

The post OYO India CEO, Europe Head Step Down Ahead Of IPO appeared first on Inc42 Media.

September 1, 2023 | 08:33 PM

Ride-hailing major Ola has reportedly joined the state-backed Open Network for Digital Commerce (ONDC) and is piloting a food delivery platform. 

Sources told The Economic Times that the startup has been experimenting with ONDC since August and has embedded a new ‘ONDC Food’ feature within the Ola app itself. As per the report, the feature is currently available only for Ola employees.

The pilot enables Ola employees to access multiple restaurants listed on the network and order from them via Ola app. This pits the ride-hailing giant directly against foodtech giants Zomato and Swiggy. 

Meanwhile, the company management reportedly sent an email to all its employees on August 24 seeking their feedback on the trial run. 

“This ONDC integration works out great for Ola because now they do not have the hassles of figuring out integration of the restaurant partners and consumers. The next step would be to open the food delivery to consumers beyond employees,” a person privy to the development told ET. 

While it was largely expected that Ola would join ONDC as a mobility player, the move to take the food delivery route appears to be the Bhavish Aggarwal-led company’s latest attempt to dabble in the foodtech space. 

Be it launching the food delivery service called Ola Cafe in 2015 or the acquisition of Foodpanda India in 2017, all major attempts by the company to establish itself in the space have largely failed. The company shut Foodpanda in 2019 and subsequently wound up its quick commerce arm Ola Dash in 2022. 

Now, ONDC seems to be the new experimenting ground for the company to realise its foodtech dreams. The sector is currently largely a duopoly of Zomato and Swiggy. 

Original Story| August 31 | 10:05 PM

Ride-hailing giant Ola is reportedly planning to jump on the Open Network for Digital Commerce (ONDC) bandwagon. 

As per Medianama, Ola’s chief executive officer (CEO) Bhavish Aggarwal, while addressing the India Internet Day event held on August 24 in Bengaluru, said that the company was planning to join the state-backed network. He, however, did not divulge any details.

Inc42 has reached out to the company for a comment on the matter, and the story will be updated accordingly.

The development comes five months after ONDC forayed into the mobility space to enable smaller local players to compete with behemoths such as Uber and Ola. With this, Ola could be looking to tap into the growing ONDC ecosystem, which counts Namma Yatri, the Juspay and Beckn Foundation-backed ride hailing app for autos, as the sole mobility player on its platform. 

While Namma Yatri currently offers services only in Bengaluru, Ola could be looking at a pan-India offering on ONDC, with its eyes set on getting the first-mover advantage. As and when Ola debuts on ONDC, the drivers of Ola may benefit from the high discoverability aspect of the network.

Simply put, the state-backed initiative will allow participating platforms (in this case mobility players) to broadcast their services across all apps on the network. As a result, a user looking for rides will simply be able to compare prices from both Namma Yatri and Ola and choose accordingly. 

As adoption grows and more and more players join the network, users could see more competitive pricing as companies undercut each other for a bigger pie of the ride-hailing market. This could pose a threat to the duopoly of Ola, which it enjoys with Uber in the ride-hailing space. 

On the other hand, Namma Yatri has so far banked on the zero commission model for drivers to drive adoption but the platform will begin charging drivers beginning September 1. 

Besides, buyer apps such as Paytm, Pincode and Spice Money may also potentially hold the key and emerge as an avenue for users to book rides on ONDC. Paytm, too, has plans to roll out support for booking rides, while other players may also follow suit. 

At a time when the ride-hailing giant is struggling with several issues, including increasing losses, customer complaints about its subpar services and growing competition from new and existing players, the move to list on ONDC may bode well for Ola.

This comes days after ONDC CEO T Koshy said that the platform is merely ‘creating sparks’ right now, adding that an ‘explosion’ would happen when the platform gathers volume. 

Brainchild of the Department for Promotion of Industry and Internal Trade (DPIIT), the network aims to ramp up ecommerce penetration to 25% in the next two years. At stake is the growing ecommerce opportunity, which is projected to reach $400 Bn by 2030. 

The post Ola Joins ONDC, Reignites Foodtech Ambitions With Food Delivery Pilot appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Cabs is likely to appoint Unilever executive Hemant Bakshi as its CEO.  

Bakshi is likely to join the ride-hailing startup next week, Economic Times reported citing sources. However, it is not clear if he would be leading just the cabs vertical or Ola Cabs’ parent entity ANI Technologies.

Ola Cabs declined to comment on the development.

The appointment of the new CEO is significant as so far founder Aggarwal was looking after the cab vertical as well as electric vehicle (EV) startup Ola Electric which he started later. 

Bakshi is based out of Singapore and has worked with Unilever for over 15 years. Currently, he is associated with the FMCG major as the EVP of Unilever Marketplace and chairman of Unilever Indonesia. 

He graduated from the Indian Institute of Technology and did his MBA from the Indian Institute of Management, Ahmedabad. 

The latest development comes at a time when Aggarwal is focusing on the initial public offering (IPO) of Ola Electric.

Last month, Aggarwal also said that the ride-hailing company was planning to join the Open Network Digital Commerce (ONDC).

Meanwhile, Ola Cabs launched Ola Prime Plus service in Bengaluru earlier this year to address the problem of ride cancellation by drivers. Last month, the company expanded the no-cancellation service to Mumbai, Pune and Hyderabad.

Currently, Ola offers cab services on demand for both inter-city and intra-city rides. It also offers auto and bike services. Ola competes with the likes of Uber, Rapido, Blusmart Mobility, Meru Cabs, among others.

Like many other startups, the company continues to struggle with mounting losses. ANI Technologies reported a loss of INR 1,522 Cr in the financial year 2021-22, up over 36% from INR 1,116 Cr in FY21. The ride-hailing business generated a revenue of INR 1,220.2 Cr during the year under review.

Ola has also fired over 2,500 employees since last year amid the ongoing funding winter and increasing losses. Meanwhile, investment firm Vanguard slashed the valuation of the ride-hailing startup twice this year. It cut the valuation of its stake in the startup by 51.6% to $25 Mn, as of May 2023, which translated to a valuation of $3.5 Bn for the company.

The post Ola Cabs To Rope In Unilever Executive Hemant Bakshi As CEO appeared first on Inc42 Media.

The narrative of ride-hailing and mobility in India so far revolves around the duopoly of Ola and Uber, similar to Flipkart and Amazon in the ecommerce segment, and even Zomato and Swiggy in the food delivery space. Despite ruling the space, the duopoly has done little to revamp the ride-hailing segment in the country.

As of 2022, data sourced from Statista indicates that Ola commanded a 41% market share, closely trailed by Uber at 37%, leaving little room for other players. But this stranglehold on the ride-hailing segment and the disruption of legacy cab and ride-hailing players has largely come on the back of steep incentives and discounts.

While one cannot deny that technology and the platform model of connecting drivers and commuters totally changed the mobility market, the extensive market share can be primarily attributed to substantial discounts offered to riders and incentives extended to drivers in the early years.

For the initial years till early 2016, both platforms claimed driver earnings exceeding INR 1 Lakh per month, which enticed a segment of the lower and lower-middle-class individuals to ply their vehicles for Ola and Uber. Numerous auto-rickshaw operators also sold their vehicles to join the growing trend.

On the consumer side, the growth came on the back of heavily subsidised rides and VC-funded discounts.

But the times have changed drastically since then.

Over the past few years, the euphoria surrounding Ola and Uber has given way to disillusionment for a significant portion of commuters due to recurrent ride cancellations by drivers, while drivers complain about lower earnings, as both platforms have looked to maximise their margins.

Today, drivers find themselves grappling with rising aggregator commissions, diminishing per-ride margins and increasing fuel costs.

Consequently, we are witnessing a number of challenges such as ride cancellations, demands of cash payments, dirty cabs, damaged seats, and lack of basic hygiene. The ride-hailing sector is also marred by many instances of drivers outrightly refusing to turn on air conditioning during rides, unless commuters shell out more.

For every INR 100 received by drivers, 20%-25% of the total fare goes into paying the platform commission, INR 5 towards GST and then there is fuel and maintenance cost, leaving drivers with very little to take home.

The predicament is exacerbated for drivers saddled with car loans, where equated monthly instalments (EMIs) are another source of distress.

Various state governments have raised concerns about surge charging and other pricing issues, while drivers have gone on strike to protest against their falling earnings.

So, what’s the solution?

At least for Ola, the answer came in the form of Prime Plus, a premium-tier service that addresses the concerns of commuters such as cancellations and promises drivers consistent earnings for drivers.

Launched in May 2023 in Bengaluru, Ola Prime Plus comes with a minimum business guarantee (MBG) scheme which ranges from INR 1,815 and INR 7,700 on a daily basis for drivers in Bengaluru.

For instance, according to various Prime Plus drivers operating in Bengaluru, completing six rides entitles a driver to earn INR 1,815, while 11 rides lead to INR 3,300, 18 rides to INR 4,900, and 28 rides to INR 7,700 (approximately).

In fact, Ola makes up for any difference between the actual earnings of the drivers and the promised MBG. If a driver completes 11 rides and only earns INR 2,500 through these rides, Ola adds an additional INR 792 (INR 800 – 1% TDS) as the incentive to uphold the MBG terms.

The MBG offered by Prime Plus is notably higher than that of regular Ola rides, according to some Prime Plus drivers that Inc42 spoke with.

Having piloted the model in Bengaluru, Ola has expanded the Prime Plus service to Mumbai, Pune, and Hyderabad. However, the specific MBG differs from city to city.

In Delhi, for instance, the MBG for 11 completed bookings will reportedly be set at INR 2,800, while Pune and Hyderabad have an even lower MBG threshold.

Is Ola Prime Plus The Answer To Ride-Hailing Problems? 

At first glance, Prime Plus seems to have solved two of the biggest problems in the ride-hailing sector, but analysts are sceptical about the long-term viability of the solution.

The Indian market is highly price-sensitive, and Prime Plus charges commuters a premium of 20%-30% above the standard fare. Remarkably, the fare for Prime Plus even surpasses that of Uber Premier, the highest tier of service on rival Uber.

An analyst from Deloitte expressed reservations about this approach. He argued that by presenting higher prices under the guise of addressing basic issues, Ola has essentially inflated the cost of access to service.

While Prime Plus might initially seem appealing to commuters and has experienced some success in the short term, its long-term feasibility is questionable. Drawing a parallel to Uber and its attempts to break up the services into Uber Premier, Uber Black, and Uber Lux based on the cost to the commuter, the analyst asked why commuters would pay a premium for basic services such as a ride guarantee.

Ola too has discontinued its premier services like Ola Select (launched in 2015) and Ola Play.

The disparity in pricing becomes especially pronounced during peak hours when standard services are already subject to 2-3X surges and Prime Plus imposes an additional premium over this, making a simple cab ride significantly more expensive than otherwise.

Analysts argue that this approach might not be economically sound in the long run.

Moreover, when considering the core offerings of Prime Plus — assured rides and well-maintained cabs — critics argue that if a service provider is unable to deliver these essentials, it’s an issue on the provider’s end, rather than a consumer problem. Charging extra for such basic assurances seems unjustifiable at this point in time.

Girish Kumar Agrawal, the founder of 3 Cube Analytics and Strategy Solutions, raises concerns about Prime Plus’ requirement for drivers to commit to rides without cancellations. He notes that enforcing such contracts with drivers has historically proven nearly impossible.

Over the past decade, numerous schemes have been attempted but none remained successful. Agrawal contended that unless a feasible breakeven point is achieved for all participants — riders, drivers and the platform — the model is prone to failure.

Does Ola Prime Plus Address Driver Concerns?

There are other concerns when it comes to Ola Prime Plus.

According to Tanveer Pasha, the president of the Ola and Uber Drivers’ Association, which represents over 36K cab drivers in Bengaluru, the service does not adequately address issues of lower earnings and unfair working conditions for drivers.

Currently, the number of cab drivers in Bengaluru has decreased from over 1 Lakh in 2019 to approximately 45K-50K drivers in 2023. The driver enrolment numbers for Ola and Uber fluctuate daily, with drivers choosing the platform offering the better deal at the time, said Pasha.

“In Bengaluru, Ola and Uber charge a 25% commission. Our demand is to reduce this commission to a maximum of 10-15%,” Pasha emphasises.

On a typical day, for normal Ola rides, drivers complete around 12-18 rides and achieve a net income of INR 800 to INR 1,000 at most. When considering maintenance costs for the cab, the actual earnings come down to INR 500. Given Bengaluru’s high cost of living, this level of income is insufficient to make ends meet.

Pasha has engaged in numerous discussions with Karnataka Transport Minister Ramalinga Reddy and CM Siddaramaiah. The aim is to either compel ride-hailing platforms to reduce their commission rates or establish a new platform like “Namma Yatri” with reduced commission rates tailored for cab drivers.

This is another chapter in the ongoing struggle of drivers seeking sustainable earning opportunities and improved working conditions through ride-hailing platforms.

“Ola Prime Plus does not give us the freedom to choose our destination. As a result, most of the time, we have to drive even 30 Km without any ride while returning home at night,” an Ola driver told Inc42.

Moreover, there is a fear that Ola might completely change the MBG terms as it has done in the past. Drivers claim that often the company changes terms without any explanation and this means earnings are extremely inconsistent.

Ola’s Deeper Issues

Ola has been sidestepping core issues for a while, and Prime Plus seems to be part of that pattern. This strategy is unlikely to bring Ola closer to achieving financial sustainability. To genuinely achieve breakeven, Ola needs to address its fundamental challenges by integrating the principles of Prime Plus into its regular services.

The company finds itself grappling with a staggering increase in year-on-year losses. Additionally, with its valuation plummeting by over 50% in the books of its investors, Ola’s readiness for an IPO seems questionable at best.

Recently, Vanguard, the US-based investment advisor with about $7.7 Tn in global assets under management, which previously invested $51.7 Mn in Ola, has devalued its Ola shares to $25 Mn. As a result, Ola’s valuation has plummeted from $7.3 Bn to $3.5 Bn in the investor’s books.

What’s intriguing here is that Ola has garnered over $3.9 Bn in funding over the last 12 years. Given the state of its financials and the mega losses in ride-hailing, securing additional funds for the company appears to be an uphill battle. Indeed, the focus of Bhavish Aggarwal is squarely on Ola Electric, which the CEO claims will go public before Ola Cabs.

Notably, a considerable portion of the Ola Cabs app is dedicated to promoting Ola Electric vehicles. This emphasis on electric vehicles indicates a bigger focus on this vertical, rather than cab-hailing.

Revenue generation is a significant hurdle for the company. Analysts believe that execution challenges will require substantial rectification rather than surface-level interventions like Prime Plus.

Any model based on big incentives on a daily basis is not going to last long. Further, the Deloitte analyst quoted earlier, underscored the necessity for a refocussed approach. Ola’s current trajectory hardly addresses the fundamental issues at hand. Perhaps the starting point is in genuinely listening to the concerns voiced by both consumers and drivers.

In this regard, Ola’s customer and driver support systems leave much to be desired. The accessibility of Ola’s support number is severely limited for both drivers and consumers. This is in stark contrast to the principles of operating a company in the Indian context, where attentiveness to customer and employee needs is deeply ingrained, the analyst added.

This disparity between operational practices and customer expectations underscores the need for a comprehensive transformation within the company’s operations.

Disrupting The Disruptors

Unlike Ola, Uber has announced plans to go all-electric by 2040. A senior Uber employee told Inc42 that Uber has already acquired a significant number of electric cars from Tata Motors which is being rolled out under the Uber Green brand. Having signed an MoU with Tata, the plan is to acquire 25K electric cars in the next one year from Tata.

With EVs, the fuel cost could be minimised by 10x, and this is where a breakeven could be achieved for the company as well as for drivers.

However, electric cabs, too, have their own issues, including charging infrastructure and high ownership costs. An electric car is usually INR 3 Lakh to INR 4 Lakh more expensive than ICE vehicles.

While Ola, too, plans to acquire 10K electric cabs, no timeline has been assigned by the company. Meanwhile, Ola Electric plans to launch affordable electric cars by 2030, a distant dream as of now.

The emergence of local ride-hailing platforms in various cities poses more significant challenges for giants like Ola and Uber.

For instance, Bengaluru-based Namma Yatri has rapidly onboarded over 89K auto drivers, establishing itself as the largest auto platform in the city.

In contrast to Uber and Ola, which charge a hefty commission, Namma Yatri has operated as a zero-commission platform thus far. However, Namma Yatri is now considering to charge a subscription fee to cover platform maintenance, development, and operational costs.

The Ola and Uber Drivers Association of Bengaluru has even urged the Karnataka government to launch a state-led platform as a countermeasure against Ola and Uber, which is currently being deliberated.

Besides Namma Yatri, Bengaluru-based Rapido is another rival of Uber and Ola in the auto and bike rental segment. Smaller competitors such as Redtaxi have gained immense popularity in Tamil Nadu cities such as Coimbatore, Trichy, Madurai, and Salem.

Another rival InDrive has captured a significant market share in multiple cities. Interestingly, InDrive is known to onboard drivers that have been blacklisted by Ola and Uber, offering rides at a comparatively lower cost.

The biggest new challenger to Ola and Uber is Gurugram-based Blu Smart Mobility, which has positioned itself as an all-electric service and offers the zero cancellation feature that Prime Plus is banking on. The platform offers well-maintained cars, and good drivers as part of their basic services, unlike Ola

Naturally, analysts and observers have questioned whether Ola is adequately addressing the existential challenges marring its platforms, given that rivals are ready to jump in to fill the gap.

So, even as Ola has launched Prime Plus as a way to temporarily plug the service quality gap, this only serves to deflect attention from the core issues and it’s unlikely to be a lasting solution to the many problems that plague ride-hailing.

The post Ola Prime Plus: A Much-Needed Overhaul Or Just Old Wine In New Bottle? appeared first on Inc42 Media.

Travel planning platforms Holidify and TripCrafters have announced their merger.

As part of the deal, TripCrafters will become a wholly-owned subsidiary of Holidify but will operate as an independent brand. It will continue to focus on building products and solutions to help travel agents scale their businesses. 

However, the platforms declined to disclose the financial details of the deal. 

Both TripCrafters and Holidify have been working together closely since 2016.

Holidify, launched in 2014 by Rohit Shroff and Kovid Kapoor, boasts of getting over 9 Mn monthly visitors. It provides a variety of services, including holiday packages, travel guides, and a selection of curated hotel listings. The platform collaborates with multiple online travel agencies (OTAs) across various destinations.

Meanwhile, TrupCrafters, founded in 2011 by Rajiv Kalra and Umang Dhanuka, facilitates travel planning by allowing travellers to compare and directly engage with multiple travel agents for package bookings. Operating as a travel marketplace, the platform connects travellers with a network of over 3,000 specialised travel agents, according to an official release.

Holidify’s extensive user base, coupled with TripCrafters’ wide network of travel partners, will provide travellers with a superior end-to-end journey, streamlining the process of planning, booking, and experiencing their trips. Holidify and TripCrafters will continue operating independently, maintaining their unique brand identities, the release added.

Rohit Shroff, CEO and cofounder of Holidify, said, “This merger will significantly enhance the user experience we offer. By guiding customers through every step of their travel journey, we are poised to redefine how people plan and enjoy their travels.”

Both Holidify and TripCrafters have achieved profitability without raising any external funding. The combined entity’s revenue run rate is approximately INR 5 Cr annually, with expectations to exceed INR 10 Cr ARR in the upcoming year, the release said.

Rajiv Kalra, CEO and cofounder of TripCrafters, added, “We are thrilled to be part of this merger, which will unlock even greater travel options for our users and business opportunities for our partners.”

The merged entity will compete with the likes of MakeMyTrip, EaseMyTrip and other OTAs which also have started offering curated holiday destination options, including all bookings in one package.

The post Travel Planning Startups Holidify & TripCrafters Merge appeared first on Inc42 Media.

Global traveltech platform Skyscanner, on Wednesday (August 23) announced the launch of its Hindi language experience across all its products and services to penetrate deeper into the Indian market.

Launched in 2003 by Barry Smith, Bonamy Grimes and Gareth Williams and owned by the Chinese traveltech major Trip.com, Skyscanner operates from offices in Asia-Pacific, Europe and North America.

Skyscanner acts as a one-stop solution for travellers looking to compare ticket fares, hotel tariffs and intra-city commutes by curating data from its partner Online Travel Agent (OTA) sites.

Skyscanner claims to have over 100 Mn users across 180 countries, with support for 30+ languages. The platform has more than 1,200 flight, hotel and car hire partners. In the Indian market, it operates in partnership with MakeMyTrip, Indigo, Goibibo, SpiceJet, Yatra, EaseMyTrip and Cleartrip, with an aim to expand partnerships in the market.

Commenting on the move, Hugh Aitken, VP of Strategic Relations said, “When accessing flight options on Skyscanner travellers will now automatically be redirected to the Hindi locale on the airline or OTA site. As well as native language support, we are also investing across our entire product portfolio, not just for consumers but importantly too for our partners in areas such as distribution, advertising and data.”

The platform further stated that in India, it observed the highest spike in search volume in 2023 since 2019 for both domestic and international destinations.

According to a study by Statista, the Indian travel and tourism industry is expected to reach a market volume of $31 Bn by 2027 growing at a CAGR of 13.47% during the period 2023-2027.

The post Skyscanner Launches In Hindi To Localise Travel Booking In India appeared first on Inc42 Media.

Following the launch of the S1 X range of electric scooters, Ola Electric announced four electric bikes during its End of ICE Part 1 event on Independence Day, 2023.

The four bikes – the Ola Cruiser, the Ola Roadster, the Ola Adventure and the Ola DiamondHead – are scheduled to be launched by the end of 2024.

• Ola Cruiser: A cruiser bike for long-distance riding
• Ola Roadster: Being pitched as a daily rider 
• Ola Adventure: Suited for off-roading
• Ola DiamondHead: A super sports bike

The EV major did not share the specifications of the four bikes, though it displayed prototypes during the live event.

The development follows comes shortly after Ola Electric introduced a new series of scooters – the Ola S1 X – alongside a new variant of its native vehicle OS, the MOVE OS 4 and a new generation of vehicle platform for all future Ola Electric scooters, the Gen 2.

The S1 X+ will start at INR 1.09 Lakh, with the purchase starting today. The 3 kWh S1 X will retail at INR 99,999. The 2 kWh variant will retail at INR 89,999.

Ola Electric also launched the Gen 2 variants of Ola S1 Pro and Ola S1 Air, taking the newly-launched scooters to five. Overall, the mobility unicorn launched or announced nine vehicles at the event.

“The future of motorcycling will be made in India, by Indians for the world,” said Bhavish Aggarwal, CEO of Ola Electric, at the live event.

The new bikes launch as Ola Electric saw its net loss almost quadruple to INR 784.1 Cr in the financial year 2021-22 (FY22) from INR 199.2 Cr in FY21. However, the numbers for FY22 are not comparable with those of FY21 as the electric vehicle (EV) startup began delivering its escooters only in December 2021.

Operating revenue stood at INR 373.4 Cr in FY22. The startup primarily earns revenue through the sale of its escooters. Further, reports suggest its losses for FY23 will hover around INR 1,116 Cr ($136 Mn) and revenue of about INR 2,750 Cr ($335 Mn), missing its publicly-stated goals for the financial year.

Other startups in the EV motorbike industry include the likes of Ultraviolette, Revolt, Ober and Tork. Globally, with the launch of motorbikes, Ola Electric will compete against the likes of Yamaha, Harley-Davidson and BMW.

The post Ola Electric Rides Into EV Motorbike Space, Announces 4 New Bikes appeared first on Inc42 Media.

In an event on Independence Day, 2023, Bhavish Aggarwal-led Ola Electric launched a new series of its electric vehicle (EV), the Ola S1 X series of scooters, along with the next generation of platforms for all Ola Electric vehicles.

The vehicle will come in three variants, the Ola S1 X (with a 2 kWh battery), the Ola S1 X and Ola S1 X+ (with a 3 kWh battery each). “This scooter will end the ICE age,” said Bhavish Aggarwal during the launch.

The Ola S1 X can go up to 195 kilometres on a single charge and can reach a top speed of 120 km/h. The vehicle can hit 0-40 km/h in 2.6 seconds, and Ola Electric claimed it to be the fastest electric scooter in the country.

However, these stats are valid for the 3 kWh S1 X, with the other two having slightly different ranges and top speeds.

The S1 X+ will start at INR 1.09 Lakh, with the purchase starting today. The 3 kWh S1 X will retail at INR 99,999. The 2 kWh variant will retail at INR 89,999. All three scooters invite a discount of INR 10,000 if a customer reserves the scooter this week.

Along with the new vehicle, Bhavish Aggarwal also introduced the new vehicle platform, the Gen 2 platform, that will be featured on all Ola Electric vehicles.

According to the mobility unicorn, the new platform will feature a new motor, a new battery, a new electric control unit and a new frame, reducing the number of parts needed, the costs and energy consumption. Ola Electric also said the new battery will separate low-voltage and high-voltage boards, improving thermal performance.

With this, Ola Electric now has a range of five electric two-wheelers, including the new Gen 2 S1 Pro, which will retail at INR 1.47 Lakh. 

Alongside the new platform, Ola Electric has also introduced the latest version of its software, the MOVE OS 4. The startup has planned a beta launch starting September 15, with a timeline of mid-October to bring it to all users.

Meanwhile, the startup also announced the launch of 100 new service centres across India, taking the total service centres to nearly 1,000.

The development comes as Ola Electric saw its net loss almost quadruple to INR 784.1 Cr in the financial year 2021-22 (FY22) from INR 199.2 Cr in FY21. However, the numbers for FY22 are not comparable with those of FY21 as the electric vehicle (EV) startup began delivering its escooters only in December 2021.

Operating revenue stood at INR 373.4 Cr in FY22. The startup primarily earns revenue through the sale of its escooters. Further, reports suggest its losses for FY23 will hover around INR 1,116 Cr ($136 Mn) and revenue of about INR 2,750 Cr ($335 Mn), missing its publicly-stated goals for the financial year.

Meanwhile, Singapore’s sovereign wealth fund Temasek is set to lead a $300 Mn – $350 Mn funding round in Ola Electric. The PE firm is said to be looking to invest $100-150 Mn in the electric vehicle maker.

The post Ola Electric Launches S1 X Range Of Scooters, Next-Gen S1 Pro appeared first on Inc42 Media.

The Supreme Court on Monday (August 14) extended the time granted to the Delhi government to finalise the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, which would regulate operations of bike taxis, till September 30.

The Delhi government had moved the court seeking an extension of the deadline, LiveLaw reported.

“The application is allowed and extension of time for issuing notification on Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023 is extended till September 30, 2023,” a bench of Justices Aniruddha Bose and Bela M Trivedi said. 

At the heart of the matter is the Delhi transport department’s decision to ban bike aggregator services offered by the likes of Uber and Rapido in February this year. It also said that a fine of INR 1 Lakh would be slapped on the aggregators flouting the norms.

Since then, the Delhi government and aggregators have been involved in a legal battle. In June, the Supreme Court stayed an order of the Delhi High Court allowing bike aggregators to continue their operations until the regulations are notified.

The Delhi government then told the Supreme Court that it would formulate the new policy by July 31. 

During Monday’s hearing, the court asked the government’s Counsel about the reason behind the delay. The Counsel replied that while the government is in the process of formulating the policy, it will take some more time for it to be finalised. 

While Uber’s counsel didn’t object to the decision to grant an extension, Rapido (Roppen Transportation Services Private Limited) was not present in the court.

“We do not think it is necessary to wait for Roppen Transportation Services Private Limited as they have chosen not to appear inspite of service,” the report quoted the SC order as saying.

It must be noted that amid the tussle over the operations of bike taxi aggregators, the Delhi government issued the draft policy in May this year. The draft proposed allowing all bike taxis and two-wheeler renting services, provided the two-wheelers in questions were electric vehicles.

The post Bike Taxi Ban: Supreme Court Gives Delhi Govt Time Till Sep 30 To Finalise Policy appeared first on Inc42 Media.

EaseMyTrip reported a 21.8% decline in profit after tax (PAT) to INR 25.9 Cr in the June quarter (Q1) of the financial year 2023-24 (FY24) from INR 33.1 Cr in the corresponding quarter of the previous fiscal hurt by a sharp increase in customer discounts.

The traveltech major’s net profit also declined over 16% from INR 31.1 Cr reported in the preceding quarter – Q4 FY23.

The decline came despite the company posting a record quarterly gross booking revenue (GBR) at INR 2,371 Cr in Q1 FY24, up 42.6% year-on-year (YoY). EaseMyTrip’s GBR in the reported quarter was also up 10.6% from the previous quarter.

EaseMyTrip’s operating revenue also jumped 41.5% YoY and 6.3% sequentially to INR 124 Cr in Q1 FY24.

Total discount provided to consumers grew to INR 76.6 Cr in the quarter under review from INR 43.9 Cr in the year-ago quarter. It also jumped 24.5% quarter-on-quarter (QoQ).

In a statement, EaseMyTrip said it recorded “remarkable” volume growth across all categories. While it sold 32.1 Lakh air tickets (net of cancellations) in Q1 FY24, up 43.3% YoY, total hotel nights sold in the quarter stood at 1.6 Lakh as against 0.7 Lakh in the last year’s quarter.

Bookings in the other segment, which include trains, buses, and more, also saw a 39.6% YoY growth to 2.2 Lakh in Q1 FY24, the startup said.

EaseMyTrip’s EBITDA INR 37.5 Cr, while EBITDA margin for the quarter stood at 29.6% as against 49.7% in Q1 FY23.

It must be noted that EaseMyTrip celebrated its 15th anniversary with a mega sale by offering discounts across segments during June 1, 2023, to June 10, 2023. It offered up to 24% off on domestic flights, up to 40% off on international flights, up to 60% off on hotel bookings, and more.

EaseMyTrip’s total expenses in Q1 FY24 skyrocketed to INR 91.6 Cr from INR 47 Cr in the corresponding quarter of the previous fiscal.

It spent INR 25.1 Cr towards marketing and sales promotion, a jump of almost 142% YoY. The company’s employee benefits expense also rose 80% to INR 17.5 Cr from 9.7 Cr reported in Q1 FY23.

Besides, EaseMyTrip also paid a service cost of INR 7.4 Cr during the reported quarter, which was nil in both Q1 FY23 and the preceding March quarter.

Its Dubai business clocked a GBR of INR 53 Cr in Q1 FY24, growing 22.3% QoQ.

Shares of EaseMyTrip ended Monday’s trading session marginally higher at INR 40.57 on the BSE.

The post EaseMyTrip’s Q1 PAT Declines 22% YoY To INR 25.9 Cr On Deep Discounts appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric saw its net loss almost quadruple to INR 784.1 Cr in the financial year 2021-22 (FY22) from INR 199.2 Cr in FY21. 

However, the numbers for FY22 are not comparable with those of FY21 as the electric vehicle (EV) startup began delivering its escooters only from December 2021.

Operating revenue stood at INR 373.4 Cr in FY22. The startup primarily earns revenue through the sale of its escooters. 

The startup generated INR 348.2 Cr through sale of products in the financial year ending on March 31, 2022, while it earned INR 19.7 Cr through sale of its services.

On the expenses front, total expenditure stood at INR 1,240.4 Cr in FY22 as against INR 305.4 Cr in the previous fiscal. Cost of material consumed was the biggest contributor to the startup’s expenses. In FY22, the startup spent INR 584.9 Cr on purchase of items. Expenses under this head stood at zero in the previous fiscal year. 

Ola Electric spent INR 282.4 Cr on employee benefit expenses in FY22, a 43.2% increase from INR 197.2 Cr in the previous year. Employee benefit expenses mostly comprises employee salaries, PF contributions, and employee welfare contributions, among others. 

Marketing expenses stood at INR 49.4 Cr in FY22 as compared to INR 1.5 Cr in FY21. It also spent INR 44.1 Cr on legal professional charges in FY22, a 60% increase from INR 27.5 Cr in FY21. 

Founded in 2017, Ola Electric entered the celebrated unicorn club within two years of its launch after raising $250 Mn from Masayoshi Son-led SoftBank. 

The startup launched its S1 and S1 Pro in August 2021. The EV unicorn had initially scheduled the live sale on September 8, 2021 but later delayed it to September 15, 2021 due to a technical glitch. 

As per a media report, the startup recorded an operating loss of $136 Mn (about INR 1,116 Cr) and revenue of $335 Mn (about INR 2,750 Cr) in the financial year 2022-23 (FY23), missing its publicly disclosed revenue goal.

Earlier, Ola Electric claimed to have surpassed INR 500 Cr in revenue in the first two months of FY23 and said it was on track to exceed $1 Bn in run rate by the end of the year.

The post Bhavish Aggarwal-Led Ola Electric Posts Loss Of INR 784 Cr In FY22 appeared first on Inc42 Media.

Bhavish Aggarwal-led ANI Technologies, which operates OLA Cabs, has reported a 1.3X rise in its net loss for the financial year 2021-22 (FY22). The Bengaluru-based unicorn’s loss stood at INR 1,522.3 Cr during the year, up 36.3% from INR 1,116.1 Cr incurred in the year-ago fiscal. 

The startup’s operating income jumped 2X Year-on-Year (YoY) to INR 1,970.4 Cr in the year under review. ANI Technologies generates most of its revenue from its mobility services. 

While the company generated INR 1,220.2 Cr from its cab-hailing business during the year under review, its financial services business garnered INR 110 Cr. In FY21, the startup earned INR 689.6 Cr from cab mobility services, whereas it generated INR 42.8 Cr from financial services.

Meanwhile, the startup’s total expenditure stood at INR 3,362.1 Cr in FY22, up 1.6X from INR 2,007.1 Cr a year ago, triggered by a significant increase in purchase of stock in trade. 

ANI Technologies coughed up INR 930 Cr on purchase of stock in trade in FY22. In contrast, it spent a mere INR 35 Lakh on the same in FY21.

Besides this, the startup spent INR 552.4 Cr on employee benefit expenses in FY22, up 1.2X from INR 436.3 Cr shelled out a year ago. Employee benefit expenses mostly comprise salaries of employees, PF contributions, gratuity, and other employee welfare benefits. 

Moving on, ANI Technologies spent INR 282 Cr on information technology compared to INR 197 Cr spent in FY21. Further, its vehicle running expenses stood at INR 588 Cr during the period under, up 2.3X YoY. Similarly, the startup witnessed a 1.9X YoY jump in its marketing and advertising expenses in FY22 to INR 255.6 Cr. 

The post Ola Cabs Parent ANI Technologies’ Loss Crosses INR 1,500 Cr In FY22 appeared first on Inc42 Media.

Ahead of its planned public listing in 2024, electric vehicle (EV) maker Ola Electric has been hit by top-level exits. 

Ola Electric’s head of strategy and planning, Slokarth Dash, and head of growth and corporate affairs, Saurabh Sharda, have resigned from the company. 

Confirming the development, an Ola spokesperson, in a statement, said, “Slokarth and Saurabh have delivered well for the company for over seven years, and we wish them well in their future pursuits.”

The development was first reported by Livemint. As per the report, two other senior executives have also tendered their resignations and are expected to depart in the coming two months. There was no clarity on the identity of these two executives. However, the EV major rejected this, calling it a ‘mischievous attempt’ to build a fake narrative. 

“This is a mischievous attempt to build a fake narrative. At Ola, we’ve built a world-class and highly experienced leadership team and hired more than 50 veterans just in the last year from Indian & global firms like Tesla, Apple, LG, among others. India is the future hub for tech and top global talent is eagerly joining new age companies like ours. Ola is the largest EV company in India thanks to the efforts of our world-class team,” added the Ola spokesperson.

Both Dash and Sharda are said to have worked closely with founder and chief executive officer (CEO) Bhavish Aggarwal. 

While Dash joined the ride-hailing company in 2015 as the program manager of leasing operations and strategy, he was elevated as the head of strategy and planning at Ola Electric in 2020. 

On the other hand, Sharda joined Ola as an associate director in 2016 and rose quickly to his current position, as part of the core team, at the EV maker in 2019. 

The exits come just a month after Aggarwal told a publication that, “I have a purpose and passion. Sometimes in the journey of a business, people don’t align with it and those separations are not as one wants. That sometimes leads to bitterness and sometimes the bitterness gets amplified.”

Dash and Sharda’s resignations come as Ola Electric prepares for its high-profile $1 Bn public listing next year. While the company is leading the two-wheeler EV ecosystem in terms of sales, it has been plagued by a series of issues, including a spate of fires involving its vehicles and the Centre’s decision to cut incentives under the FAME-II scheme.

Not just this, it was reported last month that Ola Electric missed its revenue goal in the financial year 2022-23 (FY23). The company posted a revenue of nearly INR 2,750 Cr during the year and raked up an operating loss of nearly INR 1,116 Cr. 

The post IPO-Bound Ola Electric Sees Top-Level Exits appeared first on Inc42 Media.

Ride-hailing platform Ola has expanded its Prime Plus premium service to Mumbai, Pune and Hyderabad, weeks after it expanded the no-cancellation service to all customers in Bengaluru on July 10.

The Prime Plus service is aimed at addressing the problem of ride cancellations by drivers on the platform. With Prime Plus, Ola offers complete ride assurance, eliminating any cancellations or operational hassles. 

For now, Ola Prime Plus has been rolled out to select customers across the three new cities.

“After a successful pilot in Bengaluru, a full-scale rollout of the Prime Plus service across the city has also witnessed an overwhelming response. Buoyed with the success, we are now looking beyond Bangalore by expanding to Mumbai, Pune, and Hyderabad starting today. The full-scale rollout will follow soon,” said an Ola Spokesperson.

Ola cofounder and CEO Bhavish Aggarwal also took to X (erstwhile Twitter) to announce the move. 

“Expanding our @Olacabs Prime Plus service today to Mumbai, Pune and Hyderabad. Excited to have more people experience it! Our Bengaluru Prime Plus trial has been hugely successful. Will open to select customers today and full scale rollout soon after,” said Aggarwal in an X post.

Ola currently offers cab, auto and bike services. Users can book a prime sedan or prime SUV, and get a car to rent on its app. Earlier this year, Ola also announced its entry into the premium EV category with a fleet of 10,000 cars.

The expansion of the Prime Plus service comes against the backdrop of the US-based investment firm Vanguard reportedly cutting the valuation of its stake in Ola, making it the second markdown this year.

The investment company marked down the valuation of its stake in the startup by 51.6% to $25 Mn at the end of May 2023 from the $51.7 Mn it invested initially. This translates to a valuation of $3.5 Bn for Ola, a far cry from the peak of $7.3 Bn in 2021.

Ola has also been engulfed by a host of controversies. Be it regulatory challenges or delayed financials or mounting competition from peers such as Uber and BluSmart, the ride-hailing company has been grabbing headlines for all the wrong reasons lately.

The company has laid off more than 2,500 employees since last year across multiple verticals and teams. While it has more or less shelved its public listing plans, it also undertook a massive restructuring drive to slash costs and shut cash-guzzling businesses.

The post Ola Expands No-Cancellation Prime Plus Service To Mumbai, Pune & Hyderabad appeared first on Inc42 Media.

InterGlobe Aviation Ltd, which operates India’s largest airline IndiGo is planning to launch a venture capital (VC) arm to invest in early stage startups in aviation, along with consumer-focused allied sectors such as travel, lifestyle, hospitality and transportation.

IndiGo is working on setting up a limited liability partnership (LLP) to set up its venture arm, stating in an exchange filing that its board of directors has approved the formation of the same on Wednesday (August 2).

The airline said it would take three years to complete the process. As such, the airline’s VC arm is expected to start making early stage bets from 2026 onwards.

IndiGo has set aside an initial capital of INR 7 Cr for the LLP formed to house the VC arm.

“Given our large consumer base…these investments will help us add value to the airline,” said Gaurav Negi, the CFO of IndiGo, in a post-earnings conference call.

The move comes months after IndiGo made global headlines, ordering 500 Airbus A320 aircraft for $50 Bn in the world’s largest-ever aircraft deal.

Incidentally, this is the first instance where an airline is looking to bet on Indian startups. While there is no precedent for an airline to have invested in Indian startups, major Indian corporates, including Reliance and Tata, have been betting big on the Indian startup story. 

Staying closer to familiar territory, many large FMCG brands have also been investing in FMCG startups, with an eventual acquisition always on the cards. The likes of Emami, Marico, Bikaji and ITC have picked up startups in the past.

The development comes as corporate venture funds (CVCs) are growing in prominence among Indian corporates. While many companies still invest in startups via traditional venture funds, a CVC does not have exit pressure, which can help a corporate generate higher returns from their startup investment by staying invested longer.

The same point was highlighted by Info Edge founder Sanjeev Bikhchandani while speaking at Inc42’s MoneyX in July. “I think a great benefit that we had when investing from our balance sheet was that we didn’t have the concept of fund life. Typically, a VC fund has a life, which means you have to exit and return the money,” said Bikhchandani.

India currently has over 800+ CVCs investing in startups, according to an Inc42 analysis. CVC participation in the startup ecosystem is also increasing at 7% per year.

The post IndiGo Sets Sights On Aviation & Allied Startups With New VC Fund appeared first on Inc42 Media.

Global investment firm KKR is acquiring majority stake in Indian pallet pooling platform LEAP India. The deal value remained undisclosed.

The acquisition of LEAP marks KKR’s latest infrastructure investment in India following its past deals in Hero Future Energies, Serentica Renewables, and Virescent Infrastructure, among others.

The transaction is expected to be completed by Q3 2023, subject to customary pre-closing and closing conditions.

Founded in 2013 by Sunu Mathew, LEAP provides a wide range of innovative and high-quality supply chain solutions, including equipment pooling, returnable packaging, inventory management and movement, transportation, and repair and maintenance to a diversified and large customer base across ecommerce, consumer durables, beverages, and other sectors.

LEAP had raised over $100 Mn in multiple funding rounds so far and is backed by the likes of TVS Capital, Schroder Adveq, IIFL fund, and several others. Earlier this year, LEAP also acquired Mumbai-based asset-renting firm SKAN Marine.

The startup claims to currently operates a network of 21 warehouses and over 3,500 customer locations while managing more than 6 Mn total assets, including pallets and containers, for its customers.

Ami Momaya, director of infrastructure at KKR claimed that LEAP is a “standout leader” in India’s pallet pooling industry that will play an important role in driving the country’s continued modernisation and growth.

“The company has grown rapidly since its founding under the leadership of a talented management team, and we look forward to collaborating closely and leveraging our deep infrastructure experience, operational expertise and global networks to help LEAP achieve its next stage of transformation,” Momaya said.

Deloitte and Transaction Square were LEAP’s advisors and Anagram Partners acted as its legal advisor for the transaction. 

In its statement, KRR said that the investment builds on strong macroeconomic tailwinds in India that focus on modernising, automating, and optimising efficiencies in supply chain and logistics services. As Indian corporations increasingly look to focus on core operations and sustainably streamline logistics arrangements, there is a significant opportunity for platforms such as LEAP to provide high-quality and efficient supply chain solutions. 

The post KKR To Acquire Majority Stake In Pallet Pooling Platform LEAP India appeared first on Inc42 Media.

US-based investment firm Vanguard has reportedly cut the valuation of its stake in homegrown ride-hailing giant Ola, making it the second markdown this year. 

As per Techcrunch, the investment company marked down the valuation of its stake in the startup by 51.6% to $25 Mn at the end of May 2023 from $51.7 Mn it invested initially. 

This translates to a valuation of $3.5 Bn for Ola, a far cry from the peak $7.3 Bn at the end of 2021.

Vanguard reportedly holds 1,66,185 shares, or nearly 0.7% stake, in ANI Technologies, the parent company of the ride-hailing startup. 

It is pertinent to note that this is the second valuation markdown by Vanguard of Ola this year. The US-based firm trimmed the valuation of the ride-hailing startup on its books by 35% to $4.8 Bn as of February-end.

Between February and May, Vanguard has further trimmed down the value of its stake in Ola on its book by more than 27%.

Overall, this is the fourth valuation cut for Ola undertaken by Vanguard in the past three years. The investment first slashed the startup’s valuation by nearly half (45%) in 2020, and followed it up by trimming it further by 9.5% in 2021.

The development comes at a time when Ola has been engulfed by a host of controversies. Be it regulatory challenges or delayed financials or even mounting competition from peers such as Uber and BluSmart, the ride-hailing company has been grabbing headlines for all the wrong reasons lately. 

The company has laid off more than 2,500 employees since the beginning of the last year across multiple verticals and teams. While it has more or less shelved its public listing plans, it also undertook a massive restructuring drive to slash costs and shut cash-guzzling businesses. 

As if this was not enough, more than 350 Ola Cabs recently drowned during floods in Uttar Pradesh’s Noida in a parking yard, which almost sparked a major standoff with local law enforcement agencies.

Meanwhile, valuation markdowns are not new for the Indian startup ecosystem now amid the ongoing funding winter. A slew of homegrown big names have seen valuation cuts by investors over the last few months. 

Just a day ago, it was reported that US-based asset management company Fidelity Investments slashed the valuation of its stake in SaaS unicorn Gupshup by more than 20%. 

Earlier, Inc42 reported that Peak XV Partners was looking to significantly mark down the fair value of its investment in edtech giant BYJU’S. In July, Fidelity also cut the valuation of fintech startup Pine Labs by nearly 9.2% to $4.5 Bn.

The post Vanguard Strikes Again, Axes Valuation Of Ola By Another 27% appeared first on Inc42 Media.

Nasdaq-listed Indian traveltech company MakeMyTrip reported its third straight profitable quarter with a profit of $18.6 Mn in the June quarter (Q1) of the financial year 2023-24 (FY24), as against a loss of $10 Mn in the corresponding quarter of last year.

The company’s profit also more than tripled from $5.4 Mn reported in the prior quarter, Q4 FY23, helped by seasonality factors.

MakeMyTrip generated a revenue of $196.7 Mn Q1 FY24, which rose 37.8% from $142.7 Mn reported in the corresponding quarter of last year.

Its revenue also grew 32.4% sequentially from $148.5 Mn it clocked in the previous quarter.

The startup’s air ticketing business revenue jumped 48.3% year-on-year (YoY) to $45.9 Mn, while hotels and packages business revenue increased 37.1% to $115.2 Mn in the quarter under review.

MakeMyTrip’s bus ticketing business revenue also grew 22.8% to $24.9 Mn in Q1.

“We have started the new financial year on a positive note, delivering our strongest-ever quarter with all-time high gross bookings and profits. Travel demand across customer segments stayed robust in a seasonally strong quarter for leisure travel,” said Rajesh Magow, group CEO of MakeMyTrip, in a statement. 

“The depth of travel-related offerings and quality customer experience that we deliver, powered by robust technology and product innovations, along with our strong brand are helping us cater to the evolving consumer preferences and stay ahead of the market,” he added.

We must note that MakeMyTrip returned in black in Q3 FY23 by posting a profit of $0.2 Mn.

The company’s gross bookings zoomed 31.4% YoY to $1,987.5 Mn in Q1 FY24 on a constant currency basis. MakeMyTrip’s gross bookings stood at $1,673.9 Mn in Q4 FY23.

On the expenses front, personnel expenses rose 5.8% to $33.8 Mn in the quarter ended June 30, 2023 from $32 Mn in the same period last year, primarily due to annual wage increases.

Meanwhile, MakeMyTrip spent $30.6 Mn towards marketing and sales promotion expenses in the quarter under review, a rise of 23.5% YoY. The company said that the increase was primarily due to a rise in variable costs and discretionary marketing and sales promotion expenditures such as expenses on events and brand-building initiatives in response to the sustained elevated travel demand in India.

MakeMyTrip’s cash and cash equivalents balance and term deposits stood at $521.8 Mn as of June 30, 2023. 

The post MakeMyTrip Posts $18.6 Mn Profit In Q1 FY24 As Travel Demand Remains Robust appeared first on Inc42 Media.

Online travel aggregator (OTA) EaseMyTrip, which is on an acquisition spree, on Monday (July 31) said it has received the approval of its board to acquire 51% stake each in three Indian travel companies. 

The listed traveltech player will pick up majority stakes in Mumbai-based Guideline Travels Holidays, Jammu & Kashmir-based TripShope Travel Technologies and New Delhi-headquartered Dook Travels.

The consideration for the proposed acquisition will be paid by EaseMyTrip by way of issuance of its equity shares to the selling shareholders of the respective target companies on a preferential basis, the company said in a statement. However, it didn’t disclose the size of the deal. 

EaseMyTrip said the acquisitions will further solidify its position as a major player in the travel and tourism industry.

Besides, the company also said that its board has approved raising up to INR 90 Cr through preferential allotment of shares or any other mode in one or more tranches.

“… The proceeds from the aforesaid proposed fund raising are intended to be utilised for meeting funding requirements and growth objectives of the company and its businesses,” EaseMyTrip said in an exchange filing. 

Meanwhile, the acquisitions will enable EaseMyTrip to further fuel its growth and expand its footprint across the country. In addition, the acquisitions will also enable the company to leverage talent, resources, and knowledge base of the newly-acquired companies. 

As per EaseMyTrip, the three companies will continue to maintain their respective ‘unique identities.’

“These three companies have a strong track record and a wealth of experience in their respective areas. Together, with these remarkable travel companies, we extend and embrace a diverse spectrum of exceptional services catering to larger markets,” said EaseMyTrip cofounder Nishant Pitti.

EaseMyTrip Eyes Growth, Scale

Leveraging its post-pandemic growth, the online travel aggregator has been adding startups in its kitty left, right and centre. In January this year, EaseMyTrip acquired a 55% stake in hotel booking marketplace cheQin. 

In December last year, it also picked a 75% stake in aviation asset financing and leasing firm Nutana Aviation Capital IFSC. In 2021, it also acquired Spree Hotels & Real Estate for INR  18.25 Cr.

Besides, the company has also been venturing into a host of new domains as it looks to chart out the future course for growth and scale. In May, it bagged an in-principle nod from its board to venture into the general insurance space. The Delhi NCR-based traveltech unicorn also entered into offline retail space with its ‘EaseMyTrip Franchise’ early this year. 

Meanwhile, the financial numbers of the company continue to improve. The company reported a net profit of INR 31.1 Cr in the fourth quarter (Q4) of the financial year 2022-23 (FY23), up 33.1% from INR 23.3 Cr in the year-ago quarter. Revenue from operations also nearly doubled (91.5%) year-on-year (YoY) to INR 116.6 Cr in Q4 FY23.

Founded in 2008 by Prashant Pitti, Nishant Pitti and Rikant Pitti, EaseMyTrip is a traveltech unicorn that allows users to book flight and rail tickets, hotels and holiday packages. It claims to have more than 400 international and domestic airlines and 20 lakh hotels listed on its platform. 

The company claims to have international offices in countries such as Philippines, Singapore, Thailand, the UAE, the UK, the USA and New Zealand.

The post EaseMyTrip Continues Acquisition Spree, To Pick Up Majority Stake In Three Companies appeared first on Inc42 Media.

IPO-bound Oravel Stays Ltd, the parent entity of hospitality chain OYO, told its employees in a town hall meeting on Monday (July 31) that it registered an adjusted EBITDA of about INR 175 Cr in the first quarter of the financial year 2023-2024 (FY24), sources told Inc42.

“Our Q1 adjusted EBITDA of around INR 175 Cr makes it an exciting start to the year. If you annualise this outcome, it sets us up for INR 700 Cr adjusted EBITDA this financial year, though, in all likelihood, we will achieve or probably surpass our previously stated target of INR 800 Cr,” OYO founder and CEO Ritesh Agarwal told the employees.

“The Q1 adjusted EBITDA of INR 175 Cr is nearly the same as what we achieved in Q4 last year, which is seasonally the strongest quarter,” Agarwal told the employees, as per the sources. 

It must be noted that in an addendum filed with the Securities and Exchange Board of India (SEBI), OYO had reported its first EBITDA positive quarter in Q1 FY23 at around INR 7 Cr.

Earlier this year, Agarwal told employees that the startup expected to mark its first full year of EBITDA profitability in FY23.

In the latest town hall meeting, Agarwal also informed employees that OYO added over 1,000 hotels and 3,500 homes to its platform in Q1 FY24.

“I am confident that we can deliver on our target for this year. Our cost rationalisation measures in Europe and busy summer month have positively impacted our EBITDA in the first quarter. This coupled with our increased focus on customer experience and quality improvement measures will drive our growth this year,” he added.

In April this year, Inc42 reported that OYO turned cash flow positive in Q4 FY23. The startup told its employees that it ended the March quarter with a surplus cash flow of about INR 90 Cr.

However, Agarwal made no fresh disclosure on cash flows in the latest town hall meeting.

Ahead of going public in a turbulent market, OYO has doubled down on its profitability goals in the past few quarters.

Credit rating agency Moody’s projected earlier this year that OYO would continue to remain EBIDTA positive in FY24.

Rating agency Fitch also revised its outlook on OYO’s long-term foreign- and local-currency issuer default ratings (IDRs) in May to ‘positive’ from ‘stable’, saying that the company was on track to generate positive EBITDA and cash flow in FY24.

In December last year, Inc42 exclusively reported about the SoftBank-backed hospitality unicorn laying off 600 employees.

OYO first filed the draft red herring prospectus (DRHP) for its initial public offering (IPO) in September 2021 and initially aimed to raise INR 8,430 Cr ($1.2 Bn). However, it later took the confidential route to pre-file its draft documents and cut the IPO size to $400-$600 Mn (INR 3,286 Cr-INR 4,929). 

However, as per a source, OYO is waiting for the market sentiment to recover adequately so that it can go ahead with the IPO plans.

The post IPO-Bound OYO Posts INR 175 Cr Adjusted EBITDA In Q1 appeared first on Inc42 Media.

Bhavish Aggarwal-led electric mobility startup Ola Electric reportedly recorded an operating loss of $136 Mn (about INR 1,116 Cr) and revenue of $335 Mn (about INR 2,750 Cr) in the financial year 2022-23 (FY23), missing its publicly disclosed revenue goal.

Earlier, Ola Electric claimed to have surpassed INR 500 Cr in revenue in the first two months of FY23 and said it was on track to exceed $1 Bn in run rate by the end of the year.

The company reported the FY23 matrices with sales of over 1,50,000 electric scooters, Reuters reported citing sources.

An email sent to Ola Electric by Inc42 did not elicit any response till the time of publishing the article.

Last week, Reuters reported that Ola Electric laid out aggressive projections internally earlier this year, projecting its revenue to quadruple to $1.5 Bn in 2023-24. In FY24, it reportedly also plans to turn profitable. However, these projections were made before the government slashed the FAME-II subsidy for electric two-wheelers.

At 21,417 units, Ola Electric recorded its highest-ever vehicle registrations in March 2023, the last month of FY23. Though Ola Electric has maintained its leading position in the market so far this year, its sales have taken a hit since May, adversely impacted by FAME-II issues, like most other electric two-wheeler manufacturers.

The government’s decision to cut incentives under the FAME-II scheme reportedly forced Ola Electric and others to redraw their growth plans, as per the report. 

However, the company is undeterred by the issues and is focussed on its aggressive plans for building multiple product lines and further diversifying its escooter portfolio.

Almost a year after announcing the launch of its latest Ola S1 Air escooter model, Ola Electric opened the purchase window for the vehicle to the early ‘reservers’ and Ola community members on Thursday (July 27).

Meanwhile, Aggarwal said in December last year that 2023 and 2024 would witness the launch of more two-wheeler EV products, including a mass-market scooter, a mass-market motorcycle, and multiple premium motorcycles in sports, cruisers, adventure, and road bike categories.

Besides, Ola Electric is also expected to launch its first electric car in 2024, taking on the likes of BYD, Tata, Mahindra, and the soon-incoming Tesla, among others.

On the other hand, the startup has also commenced the construction of India’s biggest gigafactory for cell manufacturing at Krishnagiri in Tamil Nadu, while it is also aiming to make a stock market debut next year.

As per the Reuters report, despite the government’s incentives cut, Ola Electric is confident that it can become operationally profitable soon, which is currently a key metric watched by potential IPO investors.

“Ola is a market leader in a short while… That’s what their existing investors are bullish on,” a source was quoted as saying.

However, the company is yet to even file its FY22 financial statement. 

Ather Energy, one of the biggest competitors of Ather Energy, saw a 5X year-on-year (YoY) jump in its operating revenue to INR 408.5 Cr in FY22. Its loss grew to INR 344.1 Cr from INR 233.3 Cr in FY21.

Meanwhile, Ola Electric continues to face a high number of user complaints for its after-sales service and due to product quality issues. Recently, an Ola escooter burst into flames in Kerala’s Thiruvananthapuram.

The post IPO-Bound Ola Electric Misses FY23 Revenue Goal, Posts Operating Loss Of $136 Mn appeared first on Inc42 Media.

Commenting on the recent incident of the Noida flood that drowned 350 Ola cabs in a parking yard, the cab aggregator has said that the yard was taken on lease from Mahindra First Choice, and it has not received any notice from the government authorities.

“We have a valid lease agreement with Mahindra First Choice for a vehicle parking yard in Noida. Ola has not received any notice from the government authorities since the inception of our lease agreement in 2020,” an Ola spokesperson said, adding that further queries may be directed to the lessor, Mahindra First Choice.

The developments come days after reports emerged that around 350 cars of Ola, parked at a dump yard in Greater Noida, were submerged due to the overflowing Hindon River.

As per a PTI report from earlier this week, police said, “In the village, there is a dump yard of Ola’s car. The vehicles recovered during the time of Covid-19 pandemic or those vehicles which got damaged are kept at this yard. The number of these vehicles is around 350.” 

“It is built on the land of a person named Satpal… The caretaker informed the police that these vehicles are currently parked in the dump yard. The high-level management of Ola was informed about water filling in the dump yard and given a notice by the police to vacate the yard in view of the rising water level of the Hindon River,” the police added.

Meanwhile, an email sent to Mahindra First Choice did not elicit a response immediately.

It is yet to be ascertained how much this incident has cost Ola.

Currently, Ola offers cab, auto, and bike services. Besides its prime sedan, prime SUV, and rental car options, the company announced entering the premium EV category with a fleet of 10,000 cars earlier this year.

Recently, US-based investment firm Vanguard Group slashed the valuation of Ola by 35% to $4.8 Bn from $7.4 Bn in May this year.

With profitability in focus and amid a funding crunch, the cab aggregator also laid off around 200 employees from its tech and product teams as part of a restructuring exercise earlier this year.

The post Noida Floods Drown 350 Ola Cabs: Company Blames It On Mahindra First Choice appeared first on Inc42 Media.

A day ahead of its plans, Ola Electric opened the purchase window for its latest escooter model, Ola S1 Air, on Thursday (July 27) to give an exclusive early access to its customers.

Ola Electric announced this during a live video streaming session on Thursday, where the founder and CEO, Bhavish Aggarwal, said that the startup will begin shipping the products early next month.

“In the next 10-15 days, everybody will start slowly getting it,” Aggarwal said. This purchase window will remain live until July 30.

Ola Electric’s plans to start delivering its Ola S1 Air escooter have come almost a year after its launch announcement in October 2022.

In October last year, the startup said that the purchase window would open in February 2023, and it had projected to start delivering the S1 Air scooters in April 2023.

Currently, early ‘reservers’ would be able to book Ola S1 Air at a special introductory price of INR 1,09,999. The ex-showroom price of the vehicle will be INR 1,19,999. 

The latest escooter model is comparatively more pocket-friendly. Ola S1 Pro now costs INR 1,39,999 and Ola S1 costs INR 1,29,999.

The electric mobility major continues to announce new launches despite several odds, including the FAME-II fiasco, complaints pertaining to its existing products, and other safety issues.

After last year’s incident of an Ola escooter fire, there have been two such cases reported so far this year. In a recent incident, an Ola scooter burst into flames in Kerala’s Thiruvananthapuram.

Meanwhile, the findings that Ola Electric was artificially keeping its vehicle prices lower to claims subsidies under the government’s FAME-II scheme have also cost the company heavily.

Despite these, Ola Electric has also been able to remain the leading electric two-wheeler player in terms of sales. However, there has been a severe drop in its month-on-month vehicle registration in June to 17,617 units, like most other electric two-wheeler players, due to the FAME-II issues. In July so far, the startup saw 16,089 units of escooters registrations, as per Vahan data

In Thursday’s session, Aggarwal said that Ola Electric is working on more interesting new products. The startup is expected to announce more product and business updates on August 15.

It must be noted that in August last year, Aggarwal announced the startup’s plans to also foray into the electric four-wheeler market. Ola Electric has also recently started the construction of the country’s biggest gigafactory at Krishnagiri in Tamil Nadu.

Commenting on the development, Aggarwal said, “We’ve just started constructing our cell factory. By the end of this year, we will have the factory complete. Next year, we will start putting our own cells in our vehicles.”

With more new escooter models and electric motorcycles in the pipeline, Ola Electric is eyeing a public listing early next year and is aiming for a market cap of $10 Bn.

The post Ola Electric Opens Purchase Window For Ola S1 Air; Deliveries To Start Soon appeared first on Inc42 Media.