India’s ride-hailing company Ola is currently facing one of the biggest challenges in its journey. While founder Bhavish Aggarwal is working on a larger vision to build a consumer-focused business group, the company is dealing with falling revenue, increasing losses, valuation cuts, debt concerns, and growing competition.
Recently, Ola Cabs was rebranded as Ola Consumer, showing the company’s plans to move beyond ride-hailing services. Apart from cabs, the company is looking at opportunities in logistics, financial services, and quick commerce through portable dark stores. Aggarwal has also spoken about using artificial intelligence from his AI startup Krutrim across Ola’s consumer businesses.
Even with his growing focus on electric vehicles and AI, Aggarwal recently called the cab business his “pehla pyaar” (first love), highlighting its importance in the company’s future plans.
Revenue Falls While Losses Continue to Grow
Ola Consumer’s latest financial performance shows that the company is under pressure. After becoming EBITDA profitable in FY24, the company saw a major decline in FY25. Its operating revenue dropped by 42% to ₹1,171 crore, while revenue from its main cab business fell by nearly 47%.
At the same time, losses increased sharply. Consolidated net loss rose to ₹662.4 crore in FY25, compared to ₹328.7 crore in the previous year. On a standalone basis, losses widened by 38% to ₹698 crore. This happened even after the company reduced employee and driver-related expenses.
To attract and retain drivers, Ola has changed its business model. Instead of charging commissions on rides, the company has moved to a subscription-based system where drivers pay a fixed fee. While this may help driver retention, industry experts believe it could bring new tax and compliance challenges.
Despite the weak financial performance, Ola Consumer is continuing its preparations for an Initial Public Offering (IPO). The company’s board has already approved plans related to the public listing, showing confidence in its long-term growth strategy.
Valuation Crash and Debt Pressure Add to Challenges
Investor confidence in Ola has fallen significantly over the past few years. One of the biggest signs of this is the repeated valuation cuts made by global asset manager Vanguard.
Ola was once valued at $7.3 billion at its peak. In 2025, Vanguard reduced the valuation to $1.25 billion. The situation became even worse in 2026 when the valuation was reportedly cut again to just $70.3 million, marking a decline of almost 99% from its peak value.
This sharp fall has affected early investors as well. Vanguard’s original investment of $51.7 million is now reportedly worth less than $1 million.
The company is also facing debt-related concerns. Moody’s Ratings recently downgraded ANI Technologies, Ola’s parent company, citing continued losses, weak cash flow, and refinancing risks.
A $65 million loan is due for repayment in December 2026. To avoid a loan covenant breach and possible default, Ola must maintain a minimum level of cash reserves. Analysts believe the company may need fresh external funding to meet these requirements comfortably.
Ola Electric Faces Financial and Legal Problems
The troubles are not limited to Ola Consumer. Ola Electric is also going through a difficult period.
The electric vehicle company has reported heavy cash burn in recent quarters, reducing its cash reserves significantly. Revenue has also fallen, and for the first time, Ola Electric’s quarterly revenue reportedly went below that of rival Ather. Due to weak sales performance, rating agencies have also revised their outlook on the company.
To manage its finances, Ola Electric approved the transfer of ₹575 crore from its research and development budget to repay debt. The company has also reduced its retail presence, bringing down the number of stores from around 4,000 to about 700. It has also cut jobs and reduced office space to lower costs.
Legal and regulatory issues have added to the pressure. Consumer complaints, regulatory investigations, insolvency proceedings initiated by a vendor, and a consumer court warrant linked to a service dispute have all drawn public attention.
Meanwhile, competition in the mobility sector is becoming stronger. Ola’s market share in ride-hailing has reportedly dropped to around 30%, while competitors like Rapido continue to expand rapidly across bike taxis, auto-rickshaws, and cab services. Rapido’s growing presence in smaller cities has helped it gain market share.
As Ola works on expanding into new businesses, integrating AI technology, and preparing for an IPO, the company faces a crucial phase. The success of Bhavish Aggarwal’s larger vision will depend on whether Ola can overcome its financial challenges, regain investor confidence, and compete effectively in an increasingly competitive market.