IPO-Bound Ola Claims 3X Faster Recovery From Second Covid Wave Than First One

After almost 18 months of pandemic, Bhavish Aggarwal-led cab aggregator Ola Cabs’ gross merchandise volume (GMV) has, for the first time, recovered to the pre-pandemic levels. Taking to Twitter, Aggarwal said that Ola Cabs last week has crossed pre-covid levels in terms of GMVs and recovery from battering second wave was three times faster than the first wave in March July last year. 

Aggarwal added that around 10 Mn people used the cab-hailing service for the first time ever in the financial year 2021. 

“As people move, they want to feel safe so they’re switching to personal or shared mobility instead of public transport. Many are moving to Autos taking our Auto business to almost 150% of pre-covid levels,” he added. Ola cabs which was launched in 2010 and was seen as an alternative of Uber, added autos to its fleet in 2015. 

To date, the cab hailing aggregator has vaccinated over 3 lakhs drivers and is looking to achieve 100% vaccination soon. Aggarwal said that Ola Cabs is looking to onboard more drivers and will be entering newer cities. The startup will also be launching new products to serve “mobility needs post covid,’” he tweeted.

Earlier this year, Inc42 reported that ride-hailing companies such Ola and Uber which were severely impacted due to the ongoing pandemic have lost around 30,000-35,000 vehicles from their fleets since September last year. One of the major reasons behind drivers leaving the platform was their inability to repay their monthly installments for the vehicles purchased on auto loans.

In July, the Bengaluru-based startup raised $500 Mn from Singapore government’s investment fund Temasek and Plum Wood Investment Ltd. 

Aggarwal, who also leads Ola Electric, the two wheeler EV manufacturer, has hinted at a potential initial public offering for Ola Cabs next year. Ola has selected banks including Citigroup Inc and Kotak Mahindra Bank Ltd to manage its initial public offering. 

The ride-hailing company has also hired investment bank Morgan Stanley for its speculated $1 Bn IPO. According to media reports, Ola will be seeking a valuation of $8 Bn in the IPO and is likely to file its draft red herring prospectus (DRHP) with the Indian market regulator SEBI in the coming months. 

Agarwal had said that Ola will be going public ahead of Ola Electric as it is a more mature business. He said that Ola will list on the stock exchange by next year, but did not hand out a specific timeline. 

With this, Ola has now followed the suit of major startups which are likely to get listed on the stock exchange next year.  Byju Raveendran-led BYJU’s, Walmart-owned Indian ecommerce platform Flipkart, and Ritesh Aggarwal-led major hospitality chain OYO are some of the startups that are likely to be listed next year.