Ola Cabs CEO Hemant Bakshi resigns; company to lay off 10% of staff ahead of IPO

Bakshi is said to have joined the Bhaavish Aggarwal-led firm in September last year, the first person said, although the company made the announcement in January.

Bakshi will pursue opportunities outside the company, according to an internal email of the company. Mint has seen a copy of the email.

‘Layoff part of larger restructuring exercise’

The Bengaluru-based firm is planning to let go of 10% of its staff as part of a larger restructuring exercise, founder Bhavish Aggarwal communicated to employees over the email on Monday. The move—which is likely to impact nearly 200 employees—is aimed at improving profitability and preparing for the “next phase of growth”, Aggarwal emphasized in the email.

Both Ola and the outgoing CEO Bakshi declined to comment.

Bakshi’s resignation and staff reduction come ahead of a $500-million public market listing planned by Ola Cabs, which is likely to value the company at $5 billion, as per a Reuters report. The company wishes to show two quarters of profitability before filing for IPO, the the second person added.

Also Read: Ola Electric faces a bumpy road ahead

“These changes will result in certain roles within the company becoming redundant. This decision was not made lightly, and we are committed to supporting those impacted during this transition period,” the email read.

“I am very confident of the strong leadership team which we have built over the last few years at Ola Consumer, who bring in a lot of experience and expertise to their respective roles. They will collaborate closely with me to drive technology-led growth,” Aggarwal said.

Earlier in April, Ola shut down its ride-hailing operations in New Zealand, Australia and the UK, to redirect focus on expanding its electric fleet in India.

Also Read: How Ola wilfully endangered its riders

“The future of mobility is electric – not just in personal mobility, but also for the ride-hailing business and there is immense opportunity for expansion in India. With this clear focus, we’ve reassessed our priorities and have decided to shut down our overseas ride-hailing business in its current form in the UK, Australia and New Zealand,” a company spokesperson had said.

Bakshi joined the Softbank-backed Ola from Unilever Indonesia where he served as vice president of the marketplace.

Ola’s electric mobility arm, Ola Electric, filed its draft red herring prospectus in December with the Securities and Exchange Board of India to raise ₹5,500 crore through an initial public offering.

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Published: 29 Apr 2024, 04:56 PM IST