Ola, the Indian ride-hailing giant, reported a 36% increase in losses for the fiscal year 2022. The company’s losses widened to Rs 1,522 crore ($200 million) from Rs 1,116 crore in the previous year.
Ola’s revenue from operations increased to Rs 1,970 crore ($250 million) in FY22 from Rs 983 crore in FY21. However, the company’s expenses also increased by nearly 68% to Rs 3,362 crore.
Ola’s losses are being attributed to the company’s investments in its electric vehicle subsidiary, Ola Electric. Ola Electric’s losses widened manifold to Rs 784 crore in FY22 from Rs 199 crore in FY21. However, the company’s revenue from operations also expanded substantially to Rs 373 crore from Rs 86 lakh in FY21.
Ola CEO Bhavish Aggarwal has ambitious plans for Ola Electric. The company has committed investments worth Rs 7,614 crore ($100 million) to build an EV hub in Tamil Nadu.
Ola’s losses are a cause for concern, but the company’s investments in its electric vehicle business could pay off in the long run. Ola is one of the leading players in the Indian electric vehicle market, and it has the potential to become a major global player in the space.