Ola Consumer's FY25 revenue drops 42%, losses widen, as company begins prep for IPO

Synopsis

Ola Consumer is moving ahead with its IPO plans. However, its recent financial reports show a significant drop in revenue and a doubling of losses. The company lost market share to competitors. This financial strain has also impacted its credit rating. Ola Electric, another venture by Bhavish Aggarwal, is also facing revenue challenges.

Ola Consumer, formerly known as Ola Cabs, is preparing for an initial public offering (IPO) even as its financials paint a grim picture, with revenue plunging 42% and losses nearly doubling in FY25.

“The Board of Directors has provided approval for an Initial Public Offering (IPO), and the Holding Company has commenced steps toward its IPO process,” the company said in its annual report filed with ROC on May 5.

“Management believes that the Company has sufficient resources including liquid investment in listed entities and strategic plans in place to meet its financial obligations and continue its operations for the foreseeable future,” the company said in its filing along with the annual report for calendar year 2025.

In FY25, Ola Consumer’s parent entity ANI Technologies, the parent company of Ola, reported a 42% drop in its revenue to Rs 1,171 crore from over Rs 2,000 crore a year earlier. The company, which primarily derives its revenue from ride hailing, lost market share to Prosus-backed Rapido, which expanded aggressively in the three- and four-wheeler market, and Uber. Losing market share also weighed on its loss, which widened to Rs 662.4 crore in FY25 from Rs 328.7 crore.

In November last year, rating agency Moody’s downgraded ANI Technologies’ credit rating and assigned a negative outlook, citing weakening operating performance that is straining liquidity and raising the risk of a breach of loan covenants.

In December 2021, Ola raised $500 million from global institutional investors through a term loan to fuel its expansion across various businesses. The company had entered the quick commerce segment at the time. It has since exited that space.

Ola Consumer’s FY25 numbers further add to the woes of Bhavish Aggarwal, whose other venture, Ola Electric, has also been witnessing a sharp drop in revenue. In March, Ola Electric sold only 10,118 vehicles, accounting for a 5.4% market share, substantially lower from over 22% it held in April 2025.