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Ola Shifts Gears: Bids Farewell to International Markets Amidst Electric IPO Drive

Ola, the Indian ride-hailing service, has announced its exit from the UK, Australia, and New Zealand, nearly six years after venturing into these markets. The decision, according to an Ola spokesperson, stems from the company's rapid growth and profitability in its home market of India, where it maintains a leading position in the segment.

The spokesperson emphasized Ola's belief in the future of electric mobility, both for personal transportation and ride-hailing services, seeing significant opportunities for expansion within India. Consequently, the company has decided to discontinue its overseas ride-hailing operations in their current form.

This strategic move aligns with Ola's focus on launching an initial public offering (IPO) for its electric vehicle division, Ola Electric. Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December 2023, aiming to raise approximately Rs 5,500 crore ($660 million). The proceeds from the IPO will be directed towards expanding cell manufacturing capacity, debt repayment, research and development, and general corporate purposes.

Ola stands out among local ride-hailing firms in India, competing vigorously with Uber. It enjoys substantial funding and boasts prominent investors such as Bessemer Venture Partners, Temasek, and Accel. Additionally, its electric vehicle arm, which is headed for an IPO, recently secured around Rs 410 crore ($50 million) through non-convertible debentures from EvolutionX.

In contrast, Uber India reported a 54.46% increase in revenue, surpassing Rs 2,600 crore during the fiscal year ending March 2023. However, the company also experienced a 57% rise in losses during the same period, with overall expenditure reaching Rs 3,146 crore in FY23 compared to Rs 2,146 crore in FY22.


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