- The Core
- Posts
- Ola Consumer IPO: More Hype Than Value?
Ola Consumer IPO: More Hype Than Value?
In partnership with
In today’s edition — Why Ola’s much touted IPO will be a hard sell to public investors; India’s trade deficit widens; TCS delivers lower hikes; and the government weighs more import duty cuts to ease US trade tensions.
DECODE THE NEWS
Ola Consumer’s IPO Puzzle: Can Bhavish Aggarwal Sell a Fading Business to Public Investors?
What?
Ola Cabs, once a dominant force in India’s ride-hailing industry, has evolved into something far more complex. Housed under ANI Technologies Pvt Ltd, the brand Ola is now a sprawling, unlisted private entity repositioning itself as a "consumer tech conglomerate." The company has expanded beyond its core cab business into AI, mapping services, and financial products, all bundled under the umbrella of Ola Consumer. But despite the flashy rebranding, business isn’t going well.
At a grand Independence Day event on August 15, 2024, Ola CEO Bhavish Aggarwal made a series of ambitious announcements—AI chips, dark stores, grocery and food delivery. While Aggarwal framed this as an exciting new chapter, it was, in reality, an attempt to unify scattered business units under a single identity, as reported by The Economic Times last month.
Why Is Ola Consumer Going Public?
Reports also suggest Ola Consumer is gearing up to go public, with plans to file its draft prospectus soon. It remains unclear how much capital the company aims to raise or at what valuation. However, beneath the bold expansion plans lies a sobering reality: Ola’s ride-hailing business, the foundation of its empire, is struggling. Revenues from cab services—still responsible for 87.5% of Ola’s operating income—fell 11.3% in FY24, dropping from Rs 1,985 crore in FY23 to Rs 1,761 crore. Meanwhile, Ola continues to lose market share to competitors like Uber and Rapido, further intensifying its slowdown.
While ride-hailing struggles, Ola’s financial services division—selling loans and insurance to Ola Electric scooter buyers—has been its only bright spot. This segment saw a 3.6x jump in revenue, from Rs 63 crore in FY23 to Rs 227 crore in FY24.
Ultimately, Ola’s ability to secure a successful listing will depend on its offer-for-sale structure and the willingness of its 53 existing investors—who have poured in more than $4billion in equity and debt—to stay on board. But unless Ola provides clearer financial disclosures and a convincing growth roadmap, its IPO might struggle to find takers in an increasingly cautious market.
What To Expect From The IPO?
A closer look at Ola Consumer’s financials accessed by TheCore showed that the total outstanding debt—including both non-current and current borrowings—stood at Rs 602.9 crore in FY24, significantly down from Rs 1,468.1 crore in FY23. While the company has managed to reduce its debt burden, its flagship cab business is losing relevance. At the same time, legal challenges—including an ongoing dispute with MapMyIndia over unauthorized data usage—pose additional risks.
With an IPO on the horizon, investors will need to ask tough questions: Can a struggling ride-hailing business, an unproven AI venture, and a fledgling fintech arm justify public investment? Is Ola banking on brand loyalty and investor FOMO rather than financial fundamentals?
MESSAGE FROM OUR SPONSOR
Simplify with BILL. Get a BrüMate Backpack Cooler.
We love our customers—and the feeling is mutual! Demo BILL Spend & Expense and get $200 to spend with BrüMate.
“BILL gives me the capability to create as many virtual cards as I want. It makes budgeting easy. I use a different card for marketing, office expenses, etc and can set budget for each. All free, no hidden fees. Makes expense tracking extremely simple.” – Dylan Jacob, Founder @ BruMate
BILL gets you:
Customizable spending limits
Real-time tracking
Scalable credit lines
Take a demo and claim $200 to spend with BrüMate.1
1Terms and Conditions apply. See offer page for details. Card issued by Cross River Bank, Member FDIC, and is not a deposit product.
PODCAST
On Episode 511 of The Core Report, financial journalist Govindraj Ethiraj talks to Ajay Srivastava, Founder, Global Trade Research Initiative as well as Jaspreet Bindra, Co-Founder and CEO of AI&Beyond.
Markets breakthrough on the 8th day to end positive.
Gold prices continue to rise on Trump induced uncertainty.
India is unveiling massive nuclear power building plans.
China is wooing its private sector once again to fight the big fight.
India is unveiling AI compute capacity, how will it work?
India’s trade deficit rises, what does that mean in the context of tariff wars?
CORE NUMBER
$22.99 Billion
India’s merchandise trade deficit widened to $22.99 billion in January, marking a two-month high as exports declined while imports continued to rise steadily, Mint reported on Monday. Merchandise exports fell to $36.43 billion, down from $38.01 billion in December. Meanwhile, imports increased to $59.42 billion, driven by rising crude oil, electronic goods, and gold shipments. Adding to the concern, the commerce ministry revised April-November import figures downward after identifying a data mismatch in gold shipments, highlighting inconsistencies in trade reporting. However, the overall value of merchandise exports for the period April 2024 to January 2025 increased by 1.39% annually to $358.91 billion. In the same time frame, goods imports ballooned by 7.43% annually to $601.90 billion.
FROM THE PERIPHERY
—💰 Tata Consultancy Services (TCS) is set to roll out its annual salary hikes for FY25 in March, with increments expected to average between 4-8%, The Economic Times reported. This comes as salary hikes across the IT sector have slowed down, reflecting broader macroeconomic uncertainty. For comparison, TCS offered an average hike of 7-9% in FY24 and 10.5% in FY22, signalling a steady decline. Meanwhile, the company has promoted 25,000 employees this fiscal, covering nearly 20% of its workforce. While IT firms are tightening compensation amid global tech spending cuts, TCS is balancing competitive pay with cost management to sustain growth.
—🌐 Indian pharma and steel tycoons are likely to be unfazed by potential U.S. tariffs, The Economic Times reported quoting industry sources. Sun Pharma’s Dilip Shanghvi noted that U.S. healthcare cost concerns would likely exempt Indian generic drugs from tariff hikes. Meanwhile, Jindal Steel’s Naveen Jindal highlighted that India’s strong domestic steel demand could mitigate any impact of the proposed 25% tariff on steel imports. However, he warned that surplus global steel, redirected from the U.S., could flood India’s market causing concerns for smaller players. The Core recently reported that as of 2024, India exported goods worth US $73.8 billion to the US.
—🚀 SBI Mutual Fund has launched the ‘JanNivesh SIP’ scheme, introducing micro systematic investment plans (SIPs) starting at Rs 250—one of the lowest SIP entry point in India. The move aims to attract first-time investors but raises questions about long-term viability, given past failures of similar low-cost SIP products due to high operational costs. To mitigate this, SBI Bank has waived transaction charges. Currently, the scheme is limited to the SBI Balanced Advantage Fund and is available on digital platforms like SBI YONO, Paytm, Groww, and Zerodha. Earlier, India’s market regulator Securities and Exchange Board of India (SEBI) had proposed incentives for distributors to push low-ticket SIPs, in a broader push for financial inclusion.
—❌ India is bracing for potential tariff hikes from the US, with Finance Minister Nirmala Sitharaman reaffirming on Monday that the government will continue cutting import duties to maintain an investor-friendly environment. Bloomberg reported that India’s higher tariff rates and a $41 billion trade surplus with the US make it especially vulnerable if Trump follows through on his reciprocal tariff threats. Analysts warn US tariffs on Indian goods could jump to 15% from 3%, and a 20% flat tariff could shave 50 basis points off India’s GDP. New Delhi is signalling further tariff reductions and concessions to avoid a full-blown trade war with its biggest export market.
THE CORE x TALENT SKILLVARSITY
The Executive Program in Business Journalism & Economic Reporting trains professionals in financial markets, economic reporting, and multimedia tools. Learn investigative techniques and AI-driven storytelling to thrive in modern media.
✉️ Write to us here, for queries or feedback
📩 Was this email forwarded to you? Subscribe
💰 Want to sponsor this newsletter? Contact us
💰💰 Found The Core interesting? Consider supporting us
👥 THE TEAM
✍️ Zinal Dedhia, Salman SH | ✂️ Rohini Chatterji | 🎧 Joshua Thomas