Ola is a ride-hailing service provider and one of the biggest players in India’s passenger mobility industry. The company has been around for over a decade and has served millions of Indians. Each year the company serves over a billion rides through its 1.5 million driver partners.
Over the last decade, the ride-hailing giant has expanded its offerings to include bike-sharing, electric vehicles, and food delivery services. Late in 2023, the company also announced diversifying further into the realm of artificial intelligence.
Now, with the company’s expansion plans and its status as one of the country’s first and most popular unicorns, it looks set to make a debut on the Indian stock market soon. So, in this article, we take a deep dive into Ola the company and explain what an investor could do to dip their toes into Ola’s growth story.
Ola Company History
Ola was founded in Mumbai, India in 2010 by Bhavish Aggarwal and Ankit Bhati. The company initially began as a taxi aggregator service and quickly gained popularity due to its affordable pricing and user-friendly app. Since then, Ola has expanded to over 250 cities in India and has diversified its services to include bike-sharing, electric vehicles, and food delivery. The company has also expanded its operations to other countries like Australia, New Zealand, and the United Kingdom.
How to Buy Ola Share:
Ola is currently not listed on the Indian stock exchanges. So it will not be possible for you to buy Ola shares or check the Ola share price.
However, that may change soon, the company’s electric vehicle arm has already filed a draft red herring prospectus with the Securities and Exchanges Board Of India. If all goes right, the EV company might be listed on the stock exchanges by late April 2024.
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According to the DRHP, Ola Electric is gearing up to raise a staggering ₹5,500 crore through a fresh issue of equity shares and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10. When Ola Electric IPO finally comes, you can apply for it and once it’s listed you can easily buy Ola Electric shares or check the Ole Electric share price.
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Here is a snapshot of Ola Electric’s financials for the last few years.
|Financials (in crores)
|Year Ending March 21
|Period Ending June 23
|Revenue from Operations
As you can see from the table above, while the company’s revenue has experienced multifold growth so has its expenses and that has impacted the company’s bottom line.
Factors Affecting Ola Performance:
Several factors can impact Ola’s Electric performance, including:
- Competition: Ola Electric faces intense competition in the electric vehicle market not only from established legacy players like Hero and TVS but also upcoming startups like Ather.
- Government Regulations: Government regulations and policies specific to the electric vehicle industry, such as incentives, subsidies, or restrictions, can significantly affect Ola Electric. Changes in regulations related to manufacturing, safety standards, or charging infrastructure could impact Ola Electric’s operations and market positioning.
- Charging Infrastructure: The availability and accessibility of charging infrastructure play a crucial role in the adoption of electric vehicles. Developments in charging technology and infrastructure expansion can affect Ola Electric’s market reach and user experience.
- Consumer Awareness and Perception: Effective marketing and education about the benefits of electric mobility are essential for shaping consumer attitudes.
- Supply Chain Resilience: The resilience of Ola Electric’s supply chain to disruptions and the sourcing of critical components, such as batteries, can affect production and overall business operations.
Alternate Investment Idea: Competitors
The company, in recent years, has made a strong push in the EV space, especially with its flagship Ola Scooters. In this space, however, the company has a lot of competition. Legacy companies such as Hero MotoCorp, Bajaj Auto, and TVS Motor have also turned their focus to the EV space and are looking to make a place in this new market. All of these companies are listed on the stock markets and have a track of good performance for the past several years. However, Ola holds the market leader position with a 32% share.
Editor's Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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