Highlights
Ola Consumer, the ride-hailing platform helmed by Bhavish Aggarwal, is experiencing a downturn in market share as competitor Rapido makes significant strides in the four-wheeler ride-hailing market. The repercussions of this decline were evident in Ola’s financial results for FY25, revealing a dramatic 42% drop in operational scale after surpassing the Rs 2,000 crore revenue threshold in FY24. Notably, the company’s losses also escalated, doubling in FY25.
According to consolidated financial statements obtained from the Registrar of Companies (RoC), Ola Cabs’ operational revenue decreased to Rs 1,171 crore for the fiscal year ending March 2025, down from Rs 2,012 crore in FY24. Income from Ola Cabs’ ride-hailing segment constituted 79% of its total operational earnings in FY25, showing a decline of over 47%, settling at Rs 925 crore compared to Rs 1,761 crore in FY24.
OlaMoney and Other Revenues
Furthermore, OlaMoney, the financial services division of Ola Cabs, revealed a 19% reduction in revenue, amounting to Rs 185 crore during the same timeframe. This division provides insurance and vehicle financing services predominantly for Ola Electric clientele, in addition to wallet services and the OlaMoney credit card.
The SoftBank-backed company also reported revenues of Rs 61 crore from its commerce, logistics, and other services. Non-operating income totalled Rs 198 crore, primarily derived from interest on fixed deposits and current investments, bringing the overall income for FY25 to Rs 1,369 crore.
Cost Structure and Expenditure
For the ride-hailing segment, driver-related expenses represented approximately 20% of total expenditures. In light of reduced operational activity, these costs decreased by 34%, resulting in Rs 401 crore in FY25, compared to Rs 607 crore in FY24. Employee-related costs also plummeted by 39%, reaching Rs 205 crore in FY25, following a 42% drop in the prior fiscal year.
In a bid to enhance operations, advertising expenses more than doubled, reaching Rs 233 crore in FY25 compared to Rs 107 crore in FY24. Other overhead costs, including legal, rent, and IT expenses, kept the company’s total expenditures at Rs 2,038 crore in FY25, remaining almost unchanged from FY24.
While Ola Cabs’ ride-hailing and financial service sectors felt the effects of FY25, the overall costs for the company stayed relatively stable, leading to a sharp increase in losses, which soared to Rs 662 crore from Rs 329 crore.
On a per-unit basis, the firm spent Re 1.74 to generate a single rupee of operating revenue during the fiscal year, with its Return on Capital Employed (ROCE) and EBITDA margins deteriorating to -31% and -48.93%, respectively.
By the end of March 2025, Ola Cabs held current assets valued at Rs 1,630 crore, including cash and bank balances of Rs 653 crore. The cash reserves significantly dropped by over 50% from Rs 1,395 crore at the end of March 2024.
In FY25, Uber India, a major competitor, reported revenues of Rs 3,849 crore, whereas its net income from ride-hailing took a considerable hit, plummeting by 89% to Rs 88 crore from Rs 807 crore in FY24. Likewise, Rapido announced a revenue of Rs 934 crore during this period.
