Ola Unveils First-Ever Operating Profit Ahead of Potential IPO

Indian automaker Ola, backed by Japan’s Softbank group, has made an operating profit for the first time since it started operations a decade ago, company documents said Tuesday.

Olachi, which has a majority stake in the Indian vehicle market and competes with Uber Technologies there, is expanding its presence in many global markets such as Australia and the UK.

Ola reported separate operating profit of Rs 89.82 crore, or EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the fiscal year ending March 2021 for a loss of Rs 610 crore.

Despite a 65 percent drop in sales over a year after demand for shared travel declined during the epidemic blockade, Ola proved profitable and helped cut aggressive spending and cut labor, the government said.

Ola was founded by Bhavish Agarwal in 2010 and plans to raise $1 billion over the next few months.

However, the company will lose two top managers, CFO Saurab himself and CEO Gauraw Porval, Reuters reports.

The company has also expanded into the production of electric cars and scooters for leasing.