Biplab Das 
In a major shutdown move, Ola, a SoftBank backed mobility player, is shutting shops in the UK, Australia and New Zealand bringing its sights back to its home market in India. This strategic step comes just as the company is preparing for its upcoming IPO and intends to bring all its resources together.
Shift in focus
With a view to the burgeoning opportunities in the Indian market, Ola has decided to shut down its ride-hailing services in Australian, British and New Zealand markets. The firm is now redirecting its efforts towards the immense growth prospects present in India, which is one of its main markets where it offers multiple two- wheelers, ride-sharing, and even food deliveries.
Closure notifications
Ola’s customers have already been notified that the company will shut down its operations in Australia which will take place from April 12 onwards. This step concludes Ola’s international debut which took place in 2018 with Australian and New Zealand expansions. The start-up positioned itself as a primary rival to Uber in the market as it served customers in cities with large populations like Sydney, Melbourne, and Brisbane.
Scaling back operations
From the last quarter of 2020, Ola took stringent actions to align its operations with Australia by cutting down jobs, shutting down local driver offices and so on. Social media gave a clear demonstration of the failing trend as the Australian accounts were not updated since the mid-2021 period.
Focus on electric mobility
Considering the future of transport as electric, Ola is determined to lead in the EV space by shaping and transforming the EV landscape in India. The company’s decision to leave the international markets reinforces the vision of the organisation to lead the world in the transition to the electric vehicles sector, characterised by the rapid growth in the next few years.
Financial implications and IPO plans
Worth USD 5.4 billion, Ola is one of India’s topmost startups that has leading investors like Temasek, Tiger Global, and Warburg Pincus involved. The company had presented its draft red herring prospectus (DRHP) of the previous year, in December. This prospectus elaborated on the company’s IPO plans to raise funds. Ola’s founder, Bhavish Aggarwal, intends to sell a portion of his shares, further fuelling the IPO’s potential.
Utilisation of funds
The funds raised through the IPO will be capitalised for an array of endeavours, including deploying the funds for Ola’s Gigafactory project as well as for R&D. However, it will also allocate money for organic business growth and general corporate purposes, as well as for paying off outstanding debts of Ola Electric Technologies (OET) which is an arm of Ola.
Ola’s recent realignment of its global strategy signals a momentous change, but it also affirms the company’s dedication towards providing innovative and eco-friendly mobility options for the Indian public.
