Ola, India's leading cab aggregator, is looking to achieve break-even numbers in another two years as it scales up its operations, founder and CEO Bhavish Aggarwal said here on Tuesday.
Ola, India’s leading cab aggregator, is looking to achieve break-even numbers in another two years as it scales up its operations, founder and CEO Bhavish Aggarwal said here on Tuesday.
“We aim to break-even in two to three years from now even as look to incrementally increase our profitability every month,” he said at a select media interaction.
Ola, he claimed, has already achieved break-even in certain cities and categories. “Ola Select is already a profitable business for the company and our Share segment has become one of the fastest growing products,” he said.
Founded in 2011, Ola has received a cumulative venture capital funding of around $1.3 billion till now, and has its presence in 102 cities with half a million vehicles on its platform. It had posted a loss of R754.87 crore for FY15 on a revenue of R418.25 crore.
While there are reports that Ola is all set to raise a fresh round of funding in the range of $500-600 million, Aggarwal chose to say that the company was well capitalised.
However, he added that there was considerable investor interest in the company. There have been reports from May onwards that Ola is close to raising fresh round of investments. The expectation is that Ola may make an announcement about it sometime next month. The last time the company raised funds was in November 2015 when it amassed $500 million. The key investors in Ola are Tiger Global, DST and Softbank among others.
Aggarwal said Ola is very focused on further improving the user experience of customers. “If we do that then competition will take care of itself so also prices and profits.”
He said that there was enough room for many players in the Indian mobility market. “If somebody brings the American concept it will go only so far and not beyond that. You have to build for Indian needs.”
On Tuesday, Ola launched a new service called Ola Play. This is a sort of remote control experience on the Ola app for users to listen to music, radio stations and watch videos while travelling in the car. Ola has also partnered with various players like Apple Music, Sony, Qualcomm, Audio compass to come out with this technology platform. The Ola play will be made available on Ola Prime in Bengaluru, Mumbai and Delhi for Ola Select customers. It will be rolled out across other cities by March 2017.