We’ve seen founders clash with founders and even their investors, but last week brought a new experience as Bhavish Aggarwal took on a comedian on X (formerly Twitter) over the allegedly poor quality of Ola Electric’s scooters and company’s customer service.

The social media skirmish took place on Sunday and appeared to simmer down by Monday evening. Yet, as the dust settled, the situation for Ola Electric only worsened. News reports dug out thousands of customer complaints against Ola Electric in the recent past, and even central government ministries were suddenly interested.

However, the problem for Ola Electric is deep because the company’s numbers are also slipping. With Q2 results on the horizon, the pressure is real on Bhavish Aggarwal and Ola Electric — as it is for Ola Consumer as it looks to go for an IPO.

Before we see why, here’s a look at the top stories from our newsroom this week: 

• Decoding Ather’s Edge: Ather Energy is coming from a vastly different trajectory to join Ola Electric in the public markets. What fate awaits Ather after Ola Electric’s less than pleasant beginning?
• The Deeptech Problem: India’s venture capital firms and fund managers often talk about innovation, but in the age of generative AI and deeptech, such talks seem shallow. So the question is: where are the deeptech investors?
• Swiggy’s Big Ask: The Swiggy IPO raises two major concerns — a high valuation and hefty losses on the books. Besides, the platform is now set to increase its IPO size as well. Will this come back to bite the food delivery giant?

Where Ola Electric Is Slipping

The scrutiny intensified when news broke that the Ministry of Heavy Industries (MHI) has asked the Automotive Research Association of India (ARAI) to verify if Ola Electric is honouring warranties and maintaining the requisite service centres.

This is a critical condition related to the company’s production-linked incentives which not only stipulate production levels but also standards in quality and safety. So there is some element of taxpayer money involved here.

This investigation comes at a time when the company’s sales have been declining. Ola Electric’s market share fell from over 30% in August to 27% in September—a signal that its grasp on the electric two-wheeler market may be weakening.

As Ola Electric grapples with this turmoil, competitors are gaining ground. Bajaj Auto’s sales surged in September, with 166% year-on-year growth, and market share growing from 19% to over 21%,

In contrast, Ola Electric’s registrations slipped 11% month-on-month, its lowest sales figures since October last year.

Legacy automakers, such as Bajaj and TVS Motor, have years of experience and have handled product or part recalls in the past. Ola Electric, being relatively new to the game, is yet to face such an issue, but its current service woes suggest that it could be heading down a spiral if it doesn’t follow the established playbook for product quality and customer service.

Meanwhile, others are also rising quickly. Ather Energy saw a 15% bump in September, and its market share has grown to 14% from 12% in August.

The fluctuations in the electric two-wheeler market this year have been influenced by changes in government subsidies under the FAME scheme. However, the recently approved ‘PM E-DRIVE Scheme,’ with an initial budget of INR 10,900 Cr over two years, aims to provide fresh momentum to EV adoption.

This new initiative targets the production of 24.79 Lakh electric two-wheelers, building on the previous FAME-II scheme, which supported the development of 10 Lakh vehicles.

This dip in sales for Ola Electric is particularly concerning given these widespread concerns about product quality. The Central Consumer Protection Authority (CCPA) issued a show cause notice asking Ola Electric to explain accusations of misleading advertising and unfair trade practices.

This emphasis on service and after-sales support should be the next focus area for electric two-wheeler makers, said Deloitte partner Rajat Mahajan.

Deloitte projects that by 2030, electric two-wheelers could account for as much as 50-55% of the total market, so naturally there’s a lot of room for all kinds of OEMs. Mahajan highlighted the distinct advantage that traditional OEMs have with extensive dealer networks and said they are better equipped to handle service and sales growth in conjunction.

“They don’t sell in districts where their customers cannot get service. Ola Electric and Ather are looking at it like a D2C model, but Ola Electric has taken it to an extreme. You cannot sell in one district and hope that the local mechanic will know how to fix the bike. Ather’s service is said to be much better and more streamlined, but they have their own set of challenges,” a Delhi NCR-based angel investor told Inc42 about why the traditional model is better for OEM services.

As these startups scale up, they may need to adopt hybrid models that combine D2C channels with dealership-based service centres to meet rising customer demands.

The Stock In Free Fall 

It’s no surprise that Ola Electric’s stock has been on a rollercoaster. On October 10, shares plunged 5.8% during intraday trading on the Bombay Stock Exchange (BSE), before closing down 5.19% at INR 90.81.

Reports around Ola’s poor service standards and the government involvement seems to have rattled investors. Since hitting a post-listing high of INR 157 in August, Ola’s shares have plummeted by 42.1%.

Earlier this week, the company launched its ‘HyperService’ initiative, promising “one-day resolution” for service issues in an attempt to stem the tide of customer complaints that have been widely circulated on social media.

While the market remains cautious, brokerages like Goldman Sachs and BofA Securities are still bullish, with Goldman Sachs assigning a price target of INR 160 per share.

Brokerage firm Bernstein, for example, maintains that Ola Electric is on track to achieve EBITDA profitability, with the highest gross margins among its competitors.

On the financial front,  Ola Electric’s consolidated net loss rose 30% YoY to INR 347 Cr in Q1 FY25, even though it fell on a quarterly basis. The Q2 FY25 numbers expected in early November will make things clear as to how the sales decline impacts Ola Electric.

In the past, Aggarwal had claimed that Ola Electric will rely on the premium category products for profitable growth. “Our premium portfolio is growing, and the launch of the mass segment has resulted in further 77% YoY growth in deliveries,” he said after the Q1 results. 

Are EVs Terrible For Customer Service?

So can Ola Electric learn from its competitors or is service an ecosystem-wide problem?

One Ather Energy executive claimed that some companies did not approach after-sales service with a clear strategy like they might have done on the distribution side. According to this senior executive, service is a natural extension of sales in the automobiles space. “When we open a new store, it’s mandatory for the dealer to also open a service centre,” the executive claimed.

Ather ensures that its service capacity matches its sales network, prioritising both technical training and soft skills for its technicians. This past week we examined how Ather’s premium positioning means it has to invest in customer service meaningfully, unlike Ola Electric which has gone for the affordable end of the spectrum. And service is a big part of the premium experience.

After accusations of poor customer service this past week, Ola said that it will look to take feedback and improve its services. Aggarwal said that the company heavily invests in training programmes, and will build a team of skilled EV technicians.

On Ather’s part, our sources said the company conducts skilling and refresher courses every six months, to ensure that its dealers and technicians can meet the high standards customers expect.

The shift to electric vehicles is also changing the dynamics of after-sales services. Traditional two-wheeler dealerships typically generate around 40% of their revenue from after-sales services. But this is not the case with EVs that have fewer mechanical parts. However, the complexity of EV technology and proprietary nature of some scooters means that authorised service centres are critical for scale.

Despite the noise about product quality and service issues, Deloitte’s Mahajan remains confident in his projection that by 2030, electric two-wheelers will dominate the market, provided subsidies and government support remain in place. And this is why the results of the government’s scrutiny into Ola Electric potentially dishonouring warranty claims is important.

Ola Electric, despite its strong product lineup, must address its service issues if it hopes to maintain its leadership position. The company’s current struggles echo those faced by smartphone makers like Xiaomi when they entered the Indian market in the early 2010s. Back then, Xiaomi was criticised for inadequate after-sales support.

This time, people are also more gravely concerned because vehicle safety issues are a lot more dangerous than a dysfunctional smartphone. “Like Xiaomi, Ola Electric will need to build a robust service network if it wants to stay on top. Otherwise, it risks losing customers and market share during this crucial growth period,” the angel investor quoted above added.

The timing of this controversy, coming during the festive season, is particularly concerning for Ola Electric, as poor service or product quality can quickly erode consumer trust. If not addressed, these issues could drive potential buyers toward competitors that have wider service networks and better recent reviews.

For Bhavish Aggarwal and Ola Electric, the road ahead also requires introspection. The company claims to be building an EV for India, but it seems to have forgotten that the quintessentially Indian maxim of ‘sasta aur tikaau’ has two parts that are equally important for the consumer.

Sunday Roundup: Tech Stocks, Startup Funding & More

• Indian startups raised $114 Mn via 22 deals during October 7-12, up 32% from $86.4 Mn, but much lower than the past few weeks. Is a cold October on the cards for Indian startups?
• Bengaluru-based B2B marketplace startup Zetwerk has joined the growing list of Indian startups eyeing an initial public offering, and is in talks with investment bank JP Morgan
• In another move to diversify beyond the grocery segment, Zomato-owned Blinkit is now preparing to roll out a cafe feature to deliver snacks and beverages to match Zepto and Swiggy Instamart

• Caratlane founder Mithun Sacheti and brother Siddhartha Sacheti, CEO of Jaipur Gems, have set up an investment firm Finqube Capital looking to institutionalise their angel investments
• Ahead of the IPO, Swiggy founder and CEO Sriharsha Majety and some of the company’s investors sold shares worth INR 670 Cr, with the CEO pocketing INR 23 Cr

The post Ola Electric Needs Servicing appeared first on Inc42 Media.

Following the footsteps of its sister concern Ola Electric, ride-hailing major Ola Consumer has reportedly sped up its public listing plans.

As per The Arc, the mobility major has sought approval from investors to turn into a public entity. The company is also said to be finalising with bankers to handle the public issue. 

Notably, turning into a public company from a private one is the first step towards a public listing.

“They want to leverage the goodwill around the listing of Ola Electric to take the cabs business public. However, that might be hard now, considering Ola Electric’s recent share slide,” a source reportedly said.

Inc42 has reached out to the company for a statement. The story will be updated upon receiving a comment from the company. Besides, the report added that founder and CEO Bhavish Aggarwal will also continue to helm the operations of Ola Consumer. 

Meanwhile, an internal investor report accessed by The Arc revealed that Ola Consumer clocked a gross order value (GOV) of INR 3,000 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25). 

As per the report, the core mobility vertical, which encompasses the ride-hailing business, contributed 77% to Ola Consumer’s cumulative GOV, or INR 2,300 Cr. Ola Consumer is said to take a 24-28% cut (commission) of the GOV, which forms its revenue. 

The company’s financial services arm accounted for the rest. It offers financial services through its arm, Ola Financial, which offers small-ticket loans and UPI payments.

The company reportedly posted an earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of INR 77 Cr in the quarter ended June 2024. 

The internal investor report also outlined that the ride-hailing giant completed 11 Cr customer rides during the quarter under review, translating into 12 Lakh rides every day. 

The company’s plans for an IPO have come to the fore just two months after the company rebranded Ola Cabs to Ola Consumer. In the same month, sister Ola Electric made a muted stock market debut as shares of the electric vehicle (EV) major listed on the BSE at INR 75.99 apiece against its IPO issue price of INR 76. 

ANI Technologies Pvt Ltd, the parent entity of the cab-hailing startup, trimmed its losses by nearly half to INR 772.2 Cr in the financial year 2022-23 (FY23) against INR 1,522.3 Cr in FY22. Meanwhile, sales jumped 42% year-on-year (YoY) to INR 2,799.3 Cr in the fiscal under review as from INR 1,970.4 Cr in FY22.

The post Ride-Hailing Major Ola Consumer Puts IPO Plans In Speed Lane appeared first on Inc42 Media.

Hospitality unicorn OYO has initiated a major overhaul in its top leadership, promoting five executives across technology, product, strategy, operations and distribution verticals.

To start with, Sonal Sinha has been appointed as the chief operating officer of OYO’s international business, said the company, in a statement.

Sinha joined OYO in 2015 and previously served as chief financial officer for the international business. She is said to be critical to OYO’s success in the US market post the pandemic.

Further, Rachit Srivastava has been elevated to the position of COO of OYO’s vacation homes business in Europe. He will be taking over from Ayush Mathur, who is leaving the company to start his own venture.

Shashank Jain will take over as head of technology and online revenue for the global business. He previously led product development for customer acquisition and retention, and is credited with leading app development for DanCenter and Belvilla, two of OYO’s brands in Europe.

Meanwhile, Pankhuri Sakhuja, who had been overseeing OYO workspaces vertical and hotel acquisition for some overseas markets, will now lead German home listings business Traum and coworking platform Innov8. 

The hospitality major has also announced that Abhinav Sinha, Global COO and chief product officer, will be moving to an advisory role, effective January 2025. Sinha is looking to launch his own startup, as per the company.

Further, OYO has promoted Ashish Bajpai to head of revenue & global OTA. In his current role, Bajpai will lend his expertise in driving OYO’s revenue growth through both direct and indirect channels and increasing the visibility and distribution of the group’s hotels and homes worldwide.

Commenting on the top deck rejig, founder and CEO Agarwal said, “As we pursue our growth objectives, agility and decisive action remain at the core of our strategy. Our leaders are continuously adapting and expanding their roles to stay ahead of the evolving market dynamics and drive our business forward.”

OYO is looking to go public as soon as next year, after shelving its plans twice. The company plans to refile its draft red herring prospectus (DRHP) with SEBI after completing the ongoing refinancing of its $660 Mn Term Loan B.

The company turned profitable in FY24 as it managed to trim its expenses by cutting employee costs and growing its top line. The unicorn posted a net profit of INR 229.5 Cr in FY24 as against a net loss of INR 1,286.5 Cr in the previous financial year.

Going ahead, OYO is looking to expand its premium inventory as well as its international base. 

Last month, OYO acquired G6 Hospitality, the parent entity of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 Mn (around INR 4382.72 Cr) in an all-cash transaction.

Besides this, OYO-owned Innov8 has forayed into the office management space mirroring the business models of the likes of publicly-listed Awfis and IPO-bound Smartworks.

The post OYO Rejigs Operations, Tech, Revenue Leadership To Drive International Biz appeared first on Inc42 Media.

Shares of Ola Electric slumped as much as 5.8% to INR 90.19 during the intraday trading on the BSE on Thursday (October 10) amid increasing government scrutiny of the two-wheeler EV startup over customer complaints.

The stock recovered slightly to end today’s trading session at INR 90.81, down 5.19% from the previous close. As many as 4.9 Cr shares were traded today and the company’s market capitalisation stood at INR 40,054.75 Cr (around $477 Mn) at the end of the day. 

Earlier, it was reported that the Ministry of Heavy Industries (MHI) has written to the Automotive Research Association of India (ARAI) to verify if the EV maker is honouring warranties and maintaining the requisite service centres. 

The Bhavish Aggarwal-led company has been facing a lot of criticism due to rising customer complaints about its aftersales service. On Sunday, Aggarwal was involved in a social media spat with comedian Kunal Kamra. While Kamra flagged customer complaints about the company’s escooters, Aggarwal accused him of taking money to criticise the company.

The company’s shares tanked 9% on October 7. Later, Ola Electric said that the Central Consumer Protection Authority (CCPA) issued a show cause notice to it for alleged violation of consumer rights, misleading advertisement, and unfair trade practices.

Since reaching a post-listing high of INR 157 in August, the company’s shares have tanked almost 42.1%. However, the stock is still trading over 19% higher from its listing price of INR 75.99 on August 9. 

Ola Electric is also facing pressure from competitors in terms of sales. Its escooter registrations dropped 11% month-on-month (MoM) to 23,965 units in September, marking its lowest monthly vehicle sales since October last year. 

However, brokerages are positive about the stock. Last month, Goldman Sachs initiated coverage on Ola Electric and gave a buy rating, with a price target of INR 160 apiece. BofA Securities also has a buy rating on the stock.

On the financial front, Ola Electric managed to trim its consolidated net loss by 30% to INR 347 Cr in Q1 FY25 from INR 267 Cr in the year-ago period. Operating revenue rose 32% year-on-year to INR 1,644 Cr in the reported quarter.

The post Ola Electric Tanks 6% Amid Rising Scrutiny Over Customer Complaints appeared first on Inc42 Media.

Just days after the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric, the Centre has now stepped up the heat on the EV maker. 

As per Livemint, the Ministry of Heavy Industries (MHI) has written to the Automotive Research Association of India (ARAI) to verify if the EV maker is indeed honouring warranties and maintaining service centres as required. 

It is pertinent to note that ARAI approved Ola Electric’s eligibility for subsidies under the Faster Adoption & Manufacturing of Electric Vehicles II (FAME-II) and the production linked incentive (PLI) schemes. 

If the MHI finds wrongdoing on part of Ola Electric, the original equipment manufacturer (OEM) could likely lose incentives and sops under the two above mentioned schemes. The two initiatives mandate EV makers, which receive subsidies, to provide a warranty of three years or 20,000 km, whichever is earlier, to the consumers. 

The Ministry of Roads, Transport and Highways (MoRTH) also plans to separately approach the consumer protection watchdog regarding information about complaints that flag issues such as selling second-hand scooters as new, charging more than promised, and manufacturing defects that could impact battery safety, the report said, citing sources. 

Meanwhile, consumer affairs secretary Nidhi Khare told Mint that the CCPA will pursue class action against Ola Electric on account of “thousands of unresolved complaints” against the EV major lodged with the National Consumer Helpline (NCH).

“With such a high volume of complaints – over 10,000 in a year, related to issues like delays in refunds, service delays, refusal of warranties and inconsistencies in performance – this case was a clear candidate for class action. When we encounter such cases, where repeated violations occur, we pursue class action after carefully examining the facts,” Khare reportedly said. 

She added that over 10,000 “dockets, documenting complaints received by NCH, have been sent to the company for investigation and resolution. As per Khare, the complaints against the company range from delay in refunds to refusal of warranties and performance inconsistencies.

“Companies should treat complaints as valuable feedback for improvement—complaints are their ears and eyes. Yet, one of the troubling findings was that Ola Electric had been charging customers even during the free service period, which is simply unacceptable,” she added.

This comes days after the CCPA shot off a show cause notice to Ola Electric over alleged violations of consumer rights, misleading advertisement and unfair trade practices. The consumer watchdog directed the EV maker to respond to the show cause notice within 15 days. 

The crackdown came right after comedian Kunal Kamra, in a post on X, slammed the company over its unsatisfactory after-sales services. In response, Ola Electric founder and CEO Bhavish Aggarwal trained guns at the comedian and accused Kamra of taking money to criticise the company.

The company has come under regulatory scanner at a time when legacy players such as TVS and Bajaj are eating into its market share. For context, in September 2024, Ola Electric’s two-wheeler registrations declined 11% month-on-month (MoM) to 23,965 units, the lowest sales since October 2023.

Meanwhile, on the financial front, losses continue to pile up. The EV major reported a net loss of INR 347 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25), up 30% from INR 267 Cr in Q1 FY24. Operating revenue rose 32% to INR 1,644 Cr during the quarter under review as against INR 1,243 Cr in Q1 FY24. 

The post After CCPA Notice, Govt Amps Up The Heat On Ola Electric appeared first on Inc42 Media.

Weeks after travel tech startup EaseMyTrip cofounder and CEO Nishant Pitti offloaded a significant amount of his shares, the startup’s board is mulling to undertake a fresh bonus issue of shares. 

In an exchange filing on October 9, EaseMyTrip said that its board of directors will meet on Monday (October 14) to consider and approve the issue of bonus shares.

For the uninitiated, bonus shares are issued by a company for free in proportion to the existing number of shares held by shareholders. 

The development comes at a time when the startup’s shares have been on a downward spiral for the last few weeks. The stock hit a fresh 52-week low of INR 31.10 during the intraday trading on October 7 amid the broader market decline. 

The downward spiral of EaseMyTrip’s shares began on September 25 when Pitti sold 16.91 Cr shares for INR 37.22 apiece, 6.73 Cr shares for INR 37.42 per share, and 1 Cr shares for INR 38.28 apiece. With this, Pitti’s stake in the startup was reduced to about 14% from over 28% at the end of the June quarter. Since then, the startup’s shares have fallen over 16%.

In the past, EaseMyTrip has issued bonus shares twice. In October 2022, the startup’s board approved the issuance of bonus shares in the ratio of 3:1 and a stock split. Before that, the company issued bonus equity shares in the proportion of 1:1 in February 2022.

On the business front, EaseMyTrip has made a number of new announcements in recent months. On September 17, the company announced the acquisition of a 30% stake in Rollins International Private Limited for INR 60 Cr ($7.15 Mn) and a 49% stake in Pflege Home Healthcare Center LLC for INR 30 Cr ($3.5 Mn) to enter the medical tourism space. 

Last month, the company also incorporated a wholly owned subsidiary Easy Green Mobility to foray into electric bus manufacturing. It plans to invest INR 200 Cr for R&D, product development, and setting up a manufacturing plant over the next 2-3 years.

Shares of EaseMyTrip ended today’s trading session 3.52% higher at INR 34.13 on the BSE.

The post EaseMyTrip To Consider Bonus Issue Amid Slump In Share Price appeared first on Inc42 Media.

Shares of online travel aggregator (OTA) Yatra slumped as much as 1.6% to hit an all-time low at INR 119.50 during the intraday trade on the BSE today (October 8). This also marks the fresh 52-week low for the stock.

However, the stock pared some loss later and was trading 1.28% up at INR 123 at 2 PM on the BSE. 

Till 2 PM, Yatra’s market capitalisation stood at INR 1,930.07 Cr ( $229.8 Mn) and as much as 1.52 Lakh shares traded hands on the bourses. 

Yesterday (October 7), the Indian benchmark indices incurred a slump with sensex losing 202.80 points, closing at 82,352.64. 

Factors like geopolitical tensions and foreign institutional investors’ selling pressure were attributed to this downturn in the market. 

However, the senses regained 642.64 points to trade 0.85% up at 81,735.05 at 2:08 PM today. 

Yatra made its market debut in September last year, listing at INR 130 against its upper price band of INR 142 for the IPO. 

Since its listing, the stock has given a negative return of 6.5% to its retail investors. 

Eyeing to increase its customer base, Yatra is on acquisition shopping and has acquired companies like Globe All India Services Limited, Adventure and Nature Network (ANN) and Air Travel Bureau (ATB) over the period. 

Founded in 2016 by Shringi, Manish Amin and Sabina Chopra, Yatra is an online travel aggregator (OTA) and India’s largest corporate travel services provider. To date, it has bagged a total funding of $151.56 Mn till date. 

On the financial front, Yatra’s consolidated net profit declined 32.5% to INR 4.04 Cr in Q1 FY25 from INR 5.99 Cr in the year-ago quarter. Sequentially, it declined about 27% from INR 5.57 Cr.

The jump in top line came even as operating revenue declined both on an annual and sequential basis. Revenue stood at INR 100.80 Cr in Q1 FY25, down 8.5% year-on-year (YoY) and 6.3% quarter-on-quarter (QoQ).

The post Yatra Shares Hit An All-Time Low At INR 119.50 appeared first on Inc42 Media.

A day after a public spat between Ola Electric CEO Bhavish Aggarwal and comedian Kunal Kamra over the former’s after-sales services, the Central Consumer Protection Authority (CCPA) has issued a show cause notice to the electric vehicle (EV) major. 

In an exchange filing, the company said that the consumer watchdog has directed it to respond to the show cause notice within 15 days. The notice, as per the company, pertains to alleged violation of consumer rights, misleading advertisement and unfair trade practices by Ola Electric. 

“… We wish to inform you that the Company has received (a) show cause notice from the Central Consumer Protection Authority. The CCPA has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond to the CCPA within the given timeframe with the supporting documents,” the filing said. 

Ola Electric said that the notice will have no impact on financial, operational or other activities of the company. 

This comes a day after a verbal duel erupted between Aggarwal and Kamra. It all started after Kamra posted a photo on X, showing Ola escooters parked outside a dealership and gathering dust. 

“Do Indian consumers have a voice? Do they deserve this? Two wheelers are many daily wage workers’ lifeline …,” said Kamra. In retort, Aggarwal accused Kamra of taking money to criticise the company, adding that Ola Electric is expanding its network and would clear the backlogs soon.

The comedian responded by calling Aggarwal “arrogant, substandard”, while Ola Electric CEO retorted by offering to pay Kamra “better” than his “flop shows”. 

Ola Electric has been facing a rising number of consumer complaints for the last few months. To address the issue, the company recently said that it would launch “HyperService” to offer “one-day resolution” of service-related issues.

Meanwhile, a day after Aggarwal’s social media spat and amid a decline in the broader Indian markets, shares of Ola Electric tanked as much 9% during the early trading hours on Monday (October 8). The stock eventually closed the day 8.31% lower at INR 90.82 on the BSE. 

The developments come at a time when competitors TVS and Bajaj Auto have started eating into the market share of Ola Electric, which saw its two-wheeler registrations decline 11% month-on-month (MoM) to 23,965 units in September — the lowest monthly vehicle sales since October last year.

On the financial front, Ola Electric’s net loss widened 30% to INR 347 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25) from INR 267 Cr in Q1 FY24. Operating revenue jumped 32% to INR 1,644 Cr during the quarter under review from INR 1,243 Cr in Q1 FY24.

The post CCPA Serves Show Cause Notice To Ola Electric appeared first on Inc42 Media.

Electric mobility startup Yulu claims to have crossed annual recurring revenue (ARR) of $30 Mn and also turned EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive on the growing demand for quick commerce and food delivery services as well as supportive government policies.

Currently, Yulu has a fleet of over 40,000 electric vehicles and is looking to double down on its plan to deploy one lakh EVs by 2025. To fuel this expansion, it will raise $100 Mn (around INR 839.6 Cr) in its Series C funding round over the next year.

Yulu, cofounded by Amit Gupta, RK Misra and Naveen Dachuri in 2017, offers electric-two wheeler mobility solutions in Bengaluru, Delhi NCR, and Mumbai. The startup now plans to expand to cities like Hyderabad, Kolkata, and Chennai.

In September last year, Yulu raised $82 Mn (INR 653 Cr) in its Series B round of funding, which was led by the US-based Magna International and saw participation from Bajaj Auto.

The startup claims to facilitate over 20 Mn deliveries per month, claiming to save 30-40% cost compared with traditional fuel vehicles. The company says that its AI powered platform allows it to scale while maintaining efficiency. 

“The simplicity and ease of our platform allow gig workers without vehicles to join the delivery workforce, while also addressing the crucial supply gap in the quick commerce value chain,” said Amit Gupta.

Yulu claims to cover about 100% of all the dark stores. It further says that its EVs comprise 35-80% of all vehicles at the store level and claims to have increased its revenue and users by more than 7X in the last 24 months. 

The growth is also supported by its battery-swapping network, Yuma Energy, and partnerships with players in the quick commerce space like Zomato, Zepto, Blinkit, Swiggy, among others. 

The company is also eyeing to grow on the back of central and state level policies to boost transport electrification and ecommerce– including government backed Open Network for Digital Commerce (ONDC). 

The company’s consolidated net loss widened 71% year-on-year (YoY) to INR 94.9 Cr in the financial year 2022-23 (FY23) as the company’s expenses jumped with the expansion of its battery swapping infra and increasing headcount.

The post Yulu Turns EBITDA Positive, Breaches $30 Mn ARR On Rising Quick Commerce Demand appeared first on Inc42 Media.

Shares of Ola Electric tumbled over 9% to INR 89.71 apiece in early trading hours today (October 7) as dissatisfied customers flooded social media platforms with complaints against the company’s after sales and service quality of escooters.

Ola’s escooter servicing has come under scrutiny yet again after the company’s founder and CEO Bhavish Aggarwal recently engaged in a verbal spat on social media with stand-up comedian Kunal Kamra.

Kamra took to X on Sunday (October 7) and posted a photo showing a horde of Ola escooters parked outside a dealership, gathering dust, seemingly waiting for servicing.

“Do Indian consumers have a voice? Do they deserve this? Two wheelers are many daily wage workers’ lifeline …” the post read.

Kamra also tagged union road transport and highways minister Nitin Gadkari in the post, and asked if “this is how Indians will get to using EVs?” 

Responding to the post, Aggarwal accused Kamra of taking money to criticise the company after a “failed comedy career”, adding that Ola is “expanding its network fast and backlogs will be cleared soon.”

The comedian called Aggarwal “arrogant and substandard”, to which he replied saying “Chot lagi? Dard hua? Aaja service center. Bahut kaam Hai. (Did it hurt. It’s very less. Come to service center). I will pay better than your flop shows pay you,.”

Aggarwal’s X war with Kamra continued even as thousands of user complaints over Ola’s unsatisfactory servicing piled up in the comments section of the post. 

An X user pointed out Ola founder’s ‘crass’ language and objected to his ‘arrogance’ in dismissing customer complaints around the after sales and service quality of the company’s electric scooters.

“Imagine a middle-class person saving 3-4 months of salary to buy an OLA, only for it to have problems in the first week and then park at your service center for days,” another user commented.

The development comes at a time when Ola Electric is seeing its market dominance eroded in the electric two-wheeler space by new players and facing a barrage of customer complaints related to its escooters and after-sales servicing.

Ola’s escooter registrations slipped 11% month-on-month (MoM) to 23,965 units in September – the lowest monthly vehicle sales since October last year, when registrations stood at 23,594 units. From a little over 30% in August, Ola’s market share dipped further to 27%.

The Bhavish Aggarwal-led startup is also facing growing public ire over unsatisfactory servicing of EVs. Last month, a customer set an Ola Electric showroom ablaze in Karnataka over unsatisfactory servicing of a recently-purchased escooter.  

To address user complaints, Ola Electric recently launched “HyperService” to offer “one-day resolution” of service-related issues. The EV manufacturer also informed the bourses that its company secretary and compliance officer Pramendra Tomar resigned from the company with effect from October 1 due to personal reasons and commitments.

The post A Day After Bhavish Aggarwal’s Social Media Spat, Ola Electric Shares Down By 9% appeared first on Inc42 Media.

In a relief for Ola, a vacation bench of the Karnataka High Court has reportedly stayed a ruling that classified the ride-hailing startup’s relation with that of its drivers as that of employer-employees. 

Earlier, a single-judge bench of Justice M G S Kamal had directed Ola parent ANI Technologies to pay a compensation of INR 5 Lakh to a woman who was allegedly sexually harassed by one of its cab drivers in 2018. The order also said that drivers would be considered as employees under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).

However, the bench of Justices S R Krishna Kumar and M G Uma, in its interim order dated September 30, stayed the previous order while hearing Ola’s appeal against it, news agency PTI reported.

Ola’s counsel argued before the bench that drivers are independent users of the platform and cannot be classified as employees. 

The case dates back to 2018, when a woman passenger alleged sexual harassment by an Ola driver, which led to a police complaint and further legal action under the POSH Act.

Besides the compensation, the single-judge bench of the Karnataka HC had also ordered ANI Technologies to pay INR 50,000 for covering the legal costs of the complainant.

Impact On Gig Economy

The earlier order, classifying the relation of Ola with its drivers as that of employer and employees, could have impacted not only the ride-hailing startup but also the entire gig economy of the country. 

From ride hailing and food delivery to ecommerce and quick commerce, most of the companies and startups don’t classify their drivers/ delivery executives as their employees. As such, the previous ruling was seen as potentially a path-breaking judgement.

Shaik Salauddin, national general secretary of the Indian Federation of App-Based Transport Workers (IFAT), earlier hailed the initial judgement. He said it set an important precedent to recognise drivers as employees and pushes for greater protections for gig workers.

It is pertinent to note that gig workers across the country have many times in the past complained about bad working conditions, long work hours, and low salaries. Besides, there have been multiple instances of gig workers going on strike or protesting against platforms to demand higher wages and improvement in working conditions.

In August, auto and taxi drivers across Delhi NCR protested against cab aggregators like Ola and Uber. Prior to that, women gig workers associated with Urban Company went on a strike at the startup’s Bengaluru office to protest against its new terms of reference. 

Notably, Fairwork India rated Ola, Uber, Dunzo, and Porter as the worst-performing startups on its index on working conditions of gig workers.

Amid all these, the Centre has been making efforts to provide social security to gig workers, while states are also taking steps to safeguard gig workers.

The post Relief For Ola: Karnataka HC Stays Order Declaring Drivers As Startup’s Employees appeared first on Inc42 Media.

The Karnataka High Court has directed Ola’s parent entity ANI Technologies to pay a compensation of INR 5 Lakh to a woman who was allegedly sexually harassed by one of its cab drivers in 2018.

The court observed that he would be considered an employee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).

A single-judge bench of Justice M G S Kamal passed the order on Monday (September 30).

As per the case, in August 2018, a woman had taken an Ola cab to her office in Bengaluru when the driver allegedly stared at her through the mirror and watched an obscene video on a mobile phone, positioning it so that it was visible to her. The woman filed a police complaint and later moved the high court, seeking action under the POSH Act.

The High Court ordered Ola’s Internal Complaint Committee (ICC) to investigate the sexual harassment complaint filed by the petitioner on September 30, 2018, and complete the process within 90 days, as per the provisions of the POSH Act.

In addition to the compensation, ANI Technologies is required to pay INR 50,000 to cover the woman’s litigation costs.

Inc42 has reached out to Ola for comments on the development. The story will be updated based on the response.

“This is a much-needed decision. While it addresses harassment under the PoSH Act, it sets an important precedent for recognizing drivers as employees. The court’s detailed scrutiny of employer responsibilities opens the door for broader protections for gig workers across India,” said Shaik Salauddin, National General Secretary of the Indian Federation of App-Based Transport Workers (IFAT).

Besides, the court also directed OLA to uphold Section 16 of the POSH Act, ensuring the confidentiality of the individuals involved in the case. The Karnataka State Transport Authority has also been instructed to continue its investigation into OLA on related matters, with a 90-day deadline for completion.

This comes at a time when the government is taking several security measures for gig workers. Recently, labour and employment minister Mansukh Mandaviya has said that aggregator platforms will soon have to register details of their gig workers on the e-Shram portal.

Incorporated in 2021, the e-Shram portal is a national database of unorganised workers, including migrant workers, construction workers, gig and platform workers.

Earlier in August, auto and taxi drivers across Delhi NCR protested against cab aggregators like Ola and Uber.

Further, women gig workers associated with Urban Company went on a strike at the startup’s Bengaluru office to protest against its new terms of reference in June this year. At the time, the gig workers claimed that the work conditions at the company were “horrific” and forced “thousands of partners to work under slavery like situations”.

Notably, Fairwork India rated Ola, Uber, Dunzo, and Porter as the worst-performing startups on its index on working conditions of gig workers.

The post Karnataka HC Orders Ola To Pay INR 5 Lakh To Woman Allegedly Harassed By Cab Driver appeared first on Inc42 Media.

In a relief to OYO, the Ahmedabad City Civil Court ordered to unseal one of the offices of the hospitality unicorn, saying the action was illegal. 

The order came a day after the court passed a “distress warrant” against OYO Hotels and Home Private Limited. Following this, a bailiff sealed OYO’s property, which is a coworking space. 

The startup moved the court against this move 

As per the order dated October 1, 2024, the Ahmedabad City Civil Court said that the decision to seal the property was beyond its jurisdiction. “… this court only issued a distress warrant though the service person went beyond said warrant and sealed the property,” the order read. 

At the heart of the issue is a payment dispute between Ahmedabad-based Meridian Hotels Ltd, which claims overdue payments from OYO. The dispute between the two parties went to arbitration and a sole arbitrator ordered OYO to pay INR 4.6 Cr to Meridian Hotels.

In its order, the court said that Meridian Hotels application didn’t mention that OYO had already challenged the arbitration award. “The court passed the order for warrant under impression that subjected award finality,” the court noted. 

Following the order, the sealed office was reopened around 5 PM today on Tuesday (October 1). 

Responding to Inc42’s queries, Gaurav Dave from Nanavati Associates, which represented OYO in the case, said, “The Honourable Court has passed an order of removing the seal today itself from the coworking place. The Honourable Judge noted that the opposite party misled the court by not disclosing that this was an ongoing litigation under appeal and that the bailiff has overstepped his jurisdiction in the blocking action of coworking space.”

Meanwhile, Inc42 has learnt that Meridian Hotels plans to appeal against the order court in the coming days.

Commenting on the issue, an OYO spokesperson said that partial access to the coworking office, in which some of its employees also sit, was blocked temporarily. 

“This is a matter where the appeal is pending in front of the court; however, it was hidden by Mr Tekwani’s (Meridian Hotels’ owner) counsel with an intent of mischief to reach out office premises. The court, after learning this matter is under appeal, has issued access to the coworking office again with immediate effect… Most of our employees in Ahmedabad sit out of company-owned hotels. The other companies sitting from the coworking space continued to have access,” the spokesperson added.

Commenting on the dispute, the spokesperson said that it is an “old rare” ongoing litigation from 2020 regarding the organisation terminating a hotel contract due to non-compliant hotel conditions. 

“We didn’t receive any prior notice which is mandatory in law, else no action would have happened in a sub judice case. We are also confident of winning this case and have full respect for the court’s final verdict,” the spokesperson added.

Sources told Inc42 that the dispute between OYO and Meridian Hotels arose amid the pandemic in 2020, when the former changed its business model. 

Prior to the pandemic, OYO used to provide a minimum revenue guarantee to hoteliers. It also used to have around 5 years of Master Service Agreement with hoteliers, with a lock-in period of a couple of years. 

Following the pandemic, OYO moved to a revenue-sharing model, resulting in several hotels moving court against it citing breach of agreement and overdue payments.

The latest development came days after OYO announced a $525 Mn acquisition of US-based G6 Hospitality, the parent entity of Motel 6 and Studio 6 brands, in a bid to expand its footprint in the US. The unicorn is eyeing international expansion to grow its top and bottom lines. In August, OYO also acquired Paris-based Checkmyguest.

Talking about financials, the startup posted its first complete year of profit in FY24. It reported a net profit of INR 229 Cr in the year ended March 31, 2024 as against a net loss of INR 1,286.5 Cr in the previous year. Operating revenue declined 1.3% to INR 5,388.7 Cr from INR 5,463.9 Cr in FY23.

The post Ahmedabad Court Calls Sealing Of OYO’s Office Illegal, Restores Access appeared first on Inc42 Media.

Shares of emobility major Ola Electric surged as much as 3.7% to INR 103.45 during the intraday trading session on the BSE today (October 1).

However, the stock pared some gains afterwards to trade at INR 102.85 at 2:14 PM, up 3.15% from the previous close. 

Till 2:14 PM, Ola Electric’s market capitalisation stood at INR 45,343.33 Cr (around $ 5.4 Bn) and as much as 5.27 Cr shares traded hands on the bourses. 

Yesterday (September 30), the Indian benchmark indices incurred the biggest single-day slump in nearly two months after a major selloff by a slew of foreign portfolio investors (FPI).

Even today, the sensex was below 34.63 points till the time of filing this article.

The stock has given fair returns of over 31% to its investors since its muted stock debuted at INR 75.99 on August 9, 2024. 

However, the stock lost its momentum after doubling its listing price within just seven trading sessions since its listing. 

As a result, 12 out of the last 14 trading sessions of the startup ended in the red. 

This comes close on the heels of Ola Electric’s escooter registrations dropping 11% month-on-month (MoM) to 23,965 units in September, marking its lowest monthly vehicle sales since October last year. 

The startup has consecutively lost its market share in EV two-wheeler segment, from a little over 30% market share in August, the EV startup’s share fell to 27% in September.

The development also comes a few days after Ola Electric’s S1 X 2kWh scooter obtained the Certification for Compliance for the PLI Scheme of automobile and auto components. 

It is pertinent to note that brokerage firm Goldman Sachs initiated coverage on Ola Electric with a ‘buy’ rating and a price target of INR 160 apiece. 

Goldman Sachs expects Ola Electric’s revenue to grow 2.5X faster and its volumes to increase 5X faster than its peers in the Indian electric two-wheeler market. The brokerage also expects the startup to achieve EBITDA breakeven by the end of FY27.

Ola Electric has also been tagged with a ‘buy’ rating by BofA Securities.

On the financial front, Ola Electric managed to trim its consolidated net loss by 30% to INR 347 Cr in Q1 FY25 from INR 267 Cr in the year-ago period. However, its operating revenue rose 32% year-on-year to INR 1,644 Cr in the reported quarter.

The post Ola Electric Shares Surge 3.7% Amid Broader Market Crash appeared first on Inc42 Media.

Shares of emobility major Ola Electric tumbled over 4% in early trading hours on Monday (September 30), slipping below the INR 100 mark amid a decline in the broader market, with Sensex and Nifty 50 suffering their worst day in almost two months. 

The stock fell as much as 4.2% to hit the day’s low at INR 97.85 apiece on the BSE. However, it recovered slightly to end the trading session at INR 99.70.

Ola Electric made a lacklustre stock market debut last month, with its shares listing flat at INR 75.99 apiece on the BSE as against an issue price of INR 76. However, the stock hit the 20% upper circuit at INR 91.18 apiece on the BSE in its first trading session. Subsequently, it rose to as much as INR 157.53.

But the shares of the Bhavish Aggarwal-led startup have ended in the red in 12 out of the last 14 trading sessions.

The decline in Ola Electric’s share price today coincided with the crash in the broader market. While the 30-share BSE Sensex fell nearly 1.5% to end the day at 84,299.78, NSE Nifty slipped 1.4% to 25,810.85. 

The benchmark equity indices logged their worst loss since August 5 due to a sell-off in domestic stocks, including heavyweights such as Reliance Industries, sparked by new stimulus measures announced by China. 

Recently, brokerage firm Goldman Sachs initiated coverage on Ola Electric with a ‘buy’ rating and a price target of INR 160 apiece. This would imply an upside of nearly 64% from the stock’s close today.

Goldman Sachs expects Ola Electric’s revenue to grow 2.5X faster and its volumes to increase 5X faster than its peers in the Indian electric two-wheeler market. The brokerage also expects the startup to achieve EBITDA breakeven by the end of FY27.

Ola Electric has also been tagged with a ‘buy’ rating by BofA Securities.

It is pertinent to mention that Ola Electric saw its consolidated net loss widen 30% to INR 347 Cr in Q1 FY25 from INR 267 Cr in the year-ago period. However, its operating revenue rose 32% year-on-year to INR 1,644 Cr in the reported quarter.

Earlier this month, HSBC expressed concerns about Ola Electric losing market share to its rivals in the EV 2W market. The brokerage firm expects a 15-20% downside risk to its FY25/26 volume projections for the EV startup.

Ola Electric saw its monthly escooter registrations decline 34% to 27,517 units in August as compared to 41,712 units in July. Despite a decline in sales, HSBC remains optimistic about Ola Electric’s recovery and has maintained its ‘buy’ rating on the stock.

Brokerage firm Bernstein is also bullish on Ola Electric. In a recent research note, it pointed out that Ola has the highest gross margin among its peers in the EV 2W market such as Ather Energy, TVS Motors and Bajaj Auto. 

According to analysts at Bernstein, Ola Electric is on track to achieve EBITDA profitability on the back of a diverse product portfolio, high vertical integration, D2C distribution model and aggressive pricing. 

In August, Ola unveiled its Roadster series of electric motorbikes and plans to enter the electric three-wheeler market soon. The company’s move to expand into newer vehicle categories is likely to give it a competitive edge over its competitors.

The post Ola Electric Slips Below INR 100 Mark Amid Broader Market Crash appeared first on Inc42 Media.

Under fire for poor after-sales service, electric vehicle (EV) major Ola Electric announced the launch of “HyperService” to offer “one-day resolution” of service-related issues.

The service will be rolled out starting October 10 in a phased manner. Ola Electric founder and CEO Bhavish Aggarwal announced the new offering in a post on X on Friday (September 27). 

He said that the company will offer “quick service guarantee” and provide a backup S1 scooter to users if issues are not addressed within a day. 

“Launching HyperService today for OlaElectric customers!… We have close to 800 stores but only about 500 service centres… With #HyperService we’re expanding our network and building the best in class ownership experience with on-demand and AI (artificial intelligence) powered service,” said Aggarwal.

The EV major also plans to double the number of company-owned service centres to 1,000 from 500 currently. In addition, Aggarwal also said that the listed EV maker will train 1 Lakh third-party mechanics under its “Network Partner Program”. 

“Training 1,00,000 third-party mechanics under our Network Partner Program to make every mechanic in India EV-ready by Dec 2025,” read the post. 

Ola Electric plans to leverage artificial intelligence (AI) to offer “proactive maintenance and remote diagnostics” tools for its customers. The new offerings will enable the company to “detect issues even before they arise” in Ola Electric escooters. 

Aggarwal said that the new features would be rolled out with its upcoming “MoveOS 5” scooter operating system 5 in October. 

This comes just a day after the listed EV giant said that it will set up 10,000 sales and service outlets by the end of 2025 to expand into smaller cities and towns. Aggarwal then also said that the company has already onboarded 625 partners under its “D2C model” and will rope in 1,000 partners ahead of the festive season this year.

Earlier in the day, the company’s S1 X 2kWh model received the “Certification for Compliance” for the availing sops under the production-linked-incentive (PLI) scheme of automobile and auto components. 

Meanwhile, Ola Electric has revamped its servicing model at a time when users continue to raise complaints online about a slew of after-sales issues with its escooters. 

Such has been the clamour that a 26-year-old-man was arrested for allegedly setting an Ola Electric showroom on fire in Karnataka’s Kalaburagi area over “unsatisfactory” service.

This comes more than a month after the EV major listed on the bourses in August this year. The company made a flat debut at INR 75.99 per share on the BSE as against the issue price of INR 76. However, the stock surged post that to an all-time high of INR 157.53.

Last month, Goldman Sachs initiated coverage on Ola Electric with a ‘BUY’ rating, saying that the startup is well placed to benefit from long-term structural trends in India’s electric two-wheeler market.

On the financial front, Ola Electric’s consolidated net loss widened 30% to INR 347 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25) from INR 267 Cr in the year-ago quarter. Operating revenue jumped 32% year-on-year (YoY) to INR 1,644 Cr during the quarter under review.

Shares of the company ended today’s trading session 1.26% lower at INR 102.20 on the BSE.

The post Ola Electric Revamps After-Sales Service Model, To Offer One-Day Service Guarantee appeared first on Inc42 Media.

Days after Ola Electric’s S1 X scooter received its DVA certification for the Production Linked Incentive (PLI) scheme, its other model, the S1 X 2kWh, has now obtained the Certification for Compliance for the PLI Scheme of automobile and auto components. 

The startup said in a statement that it had met the stringent minimum localisation criteria of 50%, as mandated by the Ministry of Heavy Industries. 

The Automotive Research Association of India (ARAI) granted this certification after testing the product and ensuring the localisation of the components.

With this certification, S1 X 2 kWh has become its fifth portfolio product to receive the PLI Certification. It has earlier received the PLI certificates for S1 Pro, S1 Air, S1 X 3kWh, and S1 X 4kWh. 

Under the scheme, Ola Electric is eligible for incentives for up to five consecutive financial years, beginning in 2024. The incentive would range between 13% and 18% of the “determined sales value” (DSV) of the products. 

“Receiving the PLI certification for our third mass-market product affirms our vertically integrated manufacturing strength marking a significant achievement in advancing India’s EV vision. The government’s ambitious Auto PLI Scheme has been a game changer that has also pushed manufacturers to enhance local supply chains, foster domestic manufacturing, and assist companies in achieving economies of scale.” Ola Electric’s spokesperson said in a statement.

The PLI scheme, launched by the Indian government in 2021, aims to boost domestic manufacturing of advanced automotive technologies, including electric vehicles (EVs). 

This certification follows its August DAV certification for the S1 X scooter model in August. In the same month,  Ola Electric’s made its debut in the bourse earlier this month on August 9. 

The much-hyped IPO of Ola Electric received a rather muted response on the listing day and made a flat debut on the bourses. The stock debuted at INR 75.99 per share as against the issue price of INR 76.

While the stock’s prices surged to double its listing pieces, it seems to have lost momentum now. 

Earlier this month, Goldman Sachs initiated coverage on a listed mobility major with a “buy” rating on the robust growth outlook, saying that the startup is set to benefit from long-term structural trends in India’s electric two-wheeler market.

On the financial front, Ola Electric’s consolidated net loss widened 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter. Operating revenue rose 32% to INR 1,644 Cr during the quarter under review from INR 1,243 Cr in Q1 FY24.

The post Ola Electric’s S1 X 2kWh Scooter Bags PLI Certification appeared first on Inc42 Media.

A day after its cofounder and CEO Nishant Pitti offloaded half of his stake for INR 920 Cr, online travel aggregator (OTA) EaseMyTrip has now partnered with PhonePe to “exclusively” list its hotels on fintech app. 

In an exchange filing on Thursday (September 26), the travel tech major said that it has entered into an exclusive partnership with PhonePe for launching its “hotels segment” on the fintech platform. 

As a part of this agreement, PhonePe users will be able to avail services offered by EaseMyTrip such as hotel deals, special offers, cab services, among others. 

The collaboration will look to leverage EaseMyTrip’s comprehensive offerings in the travel tech space and PhonePe’s user base to streamline ease of access and attract more users. 

“By integrating these segment(s) with PhonePe, we are not only expanding our reach but also ensuring that users have access to the best deals and a seamless booking experience. We look forward to growing this partnership and introducing more services on the PhonePe platform to enrich the travel experience for our customers.” said EaseMyTrip cofounder Rikant Pittie. 

OnCommenting on the partnership, chief business officer (CBO) of consumer payments at PhonePe Sonika Chandra said,  “Indians are increasingly travelling for leisure both domestically and abroad and this is part of our strategy to provide our 560+ Mn users with the best travel booking experience available in India”.

Following the announcement the shares of traveltech major were trading 5.83% up on the BSE at 1:25 PM.

This comes a day after EaseMyTrip shares the 20% lower circuit and nosedived to INR 32.78 apiece on the BSE in early trading hours. 

This circuit hit came on the back of cofounder and CEO Nishant Pitti selling 24.65 Cr shares of the travel tech startup via multiple block deals for INR 920 Cr, bringing down his stake to 14% from over 28% at the end of the June quarter.

Founded in 2008 by siblings Nishant Pitti, Rikant Pitti and Prashant Pitti, EaseMyTrip began its journey as an online travel agency but has since diversified its business to foray into insurtech and electric bus manufacturing as well.

After reporting a net loss of INR 15 Cr in Q4 FY24, the listed online travel aggregator returned to the black in Q1 FY25 and posted a net profit of INR 33.9 Cr.

The post EaseMyTrip Signs “Exclusive” Pact To List Hotels On PhonePe appeared first on Inc42 Media.

Update | September 25, 08:07 PM

Online travel aggregator (OTA) EaseMyTrip cofounder and CEO Nishant Pitti offloaded 24.65 Cr shares of the startup via multiple block deals for INR 920 Cr. 

As per the NSE data, Pitti sold 16.91 Cr shares for INR 37.22 apiece and another 6.73 Cr shares for INR 37.42 per share. The cofounder sold another 1 Cr shares for INR 38.28 apiece.

With this, Pitti’s stake in the travel tech startup has declined to slightly above 14% from over 28% at the end of the June quarter. He held 49.84 Cr shares of the OTA at the end of the June quarter this year. 

Additionally, the stake of the promoter and promoter group now stands at a little over 50% post the execution of these block deals.

Original Story | September 25, 5:02 PM

Shares of EaseMyTrip hit its 20% lower circuit and nosedived to INR 32.78 apiece on the BSE in early trading hours on Tuesday (September 25) after a 2.6% stake in the company changed hands via a block deal estimated at INR 176.5 Cr.

The stock crashed after cofounder and CEO Nishant Pitti sold over 4.6 Cr shares of EaseMyTrip at a floor price of INR 38 apiece, a discount of over 7% from the previous close, Moneycontrol reported.

Earlier, it was reported that Nishant would offload a 8.5% stake in EaseMyTrip. As per the shareholding data available on the BSE, he held a 28.1% stake in the company as of the quarter ended June.

EaseMyTrip shares have been witnessing huge selling pressure for some time. The stock has plummeted over 14% over the last month and tanked over 21% over the past six months.

Founded in 2008 by Nishant Pitti, Rikant Pitti and Prashant Pitti, EaseMyTrip began its journey as an online travel agency but has since diversified its business to foray into insurtech and electric bus manufacturing.

After reporting a net loss of INR 15 Cr in Q4 FY24, the listed online travel aggregator returned to the black in Q1 FY25 and posted a net profit of INR 33.9 Cr.

Earlier this month, EaseMyTrip set up a new subsidiary, Easy Green Mobility, to manufacture ebuses. Easy Green Mobility plans to build a plant with a capacity of producing 4,000-5,000 ebuses in the initial phase. The production capacity will be ramped up going forward.

Recently, it also jumped on the ONDC bandwagon and rolled out a marketplace called ScanMyTrip to offer travel services on the government-backed network. To tap the market opportunity in the medical tourism sector, EaseMyTrip announced that it will buy stakes in two companies for INR 90 Cr. 

Shares of EaseMyTrip made some recovery later in the day today but still ended 16.4% lower at INR 34.3 apiece on the BSE. The startup’s market capitalisation stood at INR 6,078.1 Cr (about $727 Mn).

The post [Update] EaseMyTrip CEO Nishant Pitti Sells Co’s Shares Worth INR 920 Cr appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric is extending its lead over its rivals in the electric two-wheeler (EV 2W) market on the back of a diverse product portfolio, high vertical integration, D2C distribution model and aggressive pricing supported by PLI and FAME subsidies, according to brokerage firm Bernstein.

In a recent research note, analysts at Bernstein said Ola Electric is on track to achieve EBITDA profitability and has the highest gross margin among its peers. 

Ola reported an EBITDA margin of -2% in the June quarter of the financial year 2023-24. On the other hand, its competitors TVS Motor, Bajaj Auto and Ather Energy reported an EBITDA margin of -7.9%, -10.4% and -37%, respectively, during the period.

The brokerage firm pointed out that Ola is already generating positive operating EBITDA from the sale of its premium models such as S1 Pro and S1 Air. In contrast, its competitors TVS and Bajaj Auto are incurring a per-unit EBITDA loss of 7.5% and 10.5%, respectively.

In Q1 FY25, Ola Electric boasted a gross margin of 18.4%, with TVS trailing behind at 14%, Bajaj at 12.3% and IPO-bound Ather Energy at 7%, as per the report.

Ola’s push for aggressive localisation, greater mix of in-house manufacturing of components, and better scalability in EVs is helping the recently listed EV startup clock better EBITDA profitability and higher gross margins as compared to its rivals, Bernstein said.

While Ola sells a range of escooters targeting premium and mass market segments, Ather Energy caters to premium customers and its EV 2Ws are priced higher than Ola’s. Ather Energy has lower volumes as compared to its peers, it added.

“Ola primarily targets urban commuters and tech savvy, cost conscious customers, which has driven its leading volumes till now. It aims to build scale by offering multiple form factors,” the report said.

While Bajaj Auto’s Chetak is the only escooter in India with a metal body, it lacks youth appeal and premium features and lags in performance and range despite being affordable. Moreover, unlike Ola Electric, Bajaj outsources critical EV 2W components such as motors and battery backs, it said.

The report comes days after brokerage firm Goldman Sachs initiated coverage on Ola Electric with a ‘buy’ rating, saying it expects the EV mobility startup to achieve EBITDA breakeven by FY27E, primarily driven by decrease in battery pack prices.

Analysts at Goldman Sachs pointed out that Ola Electric has the strongest product pipeline among its competitors, with 14 planned launches. It was followed by TVS with eight planned launches and Bajaj Auto with six.

It is pertinent to note that Ola Electric last month unveiled its Roadster series of electric motorbikes and is also gearing up to foray into the electric three-wheeler market, with the move expected to give the company a further competitive edge over its competitors.

The post Ola Extends Lead Over Rivals In EV 2W Market, On Track To Achieve EBITDA Profitability: Bernstein appeared first on Inc42 Media.

Travel tech major OYO has informed its investors that the acquisition of Motel 6 and Studio 6 parent G6 Hospitality will take its earnings before interest, tax, depreciation, and amortisation (EBITDA) past the INR 2,000 Cr mark in the financial year 2025-26 (FY26), sources told Inc42.

OYO expects the new acquisition to start showing results immediately. “The acquisition of G6 Hospitality entails a quick return of investment for OYO. The reason behind this is the fact that both OYO and G6 are EBITDA positive and command large footprints in India and America, respectively. Thus, OYO’s EBITDA will get a boost because of the move,” one of the sources said. 

The development was first reported by PTI. Sources told the publication that OYO will be financing the acquisition in a mix of debt and equity. Further, the startup is also set to utilise $250 Mn from its recent fundraise and existing cash balance. In August, OYO raised INR 1,457 Cr (around $175 Mn) in a down round led by Patient Capital, along with J&A Partners and ASK Financial Holdings. 

Marking its biggest acquisition till date, OYO, last week, announced the acquisition of G6 Hospitality from Blackstone Real Estate for $525 Mn in an all-cash transaction. The deal is expected to close in the fourth quarter of 2024.

Besides the acquisition, OYO is looking to add about 250 hotels to its US network in 2024. As of September 20, OYO runs 320 hotels across 35 states in the country. 

On the other hand, G6 owner Blackstone claims that the Motel 6 brand operates a franchise network of about 1,500 hotels across the US and Canada. Blackstone bought the motel chain for $1.9 Bn in 2012. 

Since its acquisition, Blackstone Real Estate Asset Management Americas’ head Rob Harper claims that Blackstone more than tripled its investors’ capital and generated over $1 Bn in profit over its hold period. 

“Motel 6’s franchise network produces gross room revenues of $1.7 Bn, which generates a strong fee base and cash flow for G6,” Blackrock said in a statement. 

OYO, which has delayed its IPO plans multiple times, reported its first profitable year in FY24. The unicorn posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in FY23, as per its filings with the Ministry of Corporate Affairs. 

However, operating revenue dipped 1.3% to INR 5,388.7 Cr in FY24 from INR 5,463.9 Cr in the previous fiscal year. 

Moving forward, the startup’s founder and CEO Ritesh Agarwal said that OYO is expecting to triple its PAT to INR 700 Cr in the ongoing fiscal year. For the improvement in its top line, the company said in its annual report that it will be looking to expand across Europe, the US, Southeast Asia and the Middle East, besides focusing on its India business. 

As part of this plan, OYO also acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal last month.

The post OYO’s Acquisition Of Motel 6 To Take Its EBITDA Past INR 2,000 Cr Mark In FY26 appeared first on Inc42 Media.

Bengaluru-based electric vehicle startup Ultraviolette Automotive has started exporting the first batch of its made-in-India F77 MACH 2 high-performance electric motorcycles to the European Union (EU) markets.

The ceremony took place at Ultraviolette’s manufacturing facility in Bengaluru, led by Union Minister of Heavy Industries H.D. Kumaraswamy and Minister of Industries and Commerce, Karnataka, M.B. Patil. 

Kumaraswamy said, “The expansion of Ultraviolette into the European market represents a defining moment for India’s automotive industry, demonstrating our nation’s ability to compete on the global stage.”

Patil added, “Bengaluru is at the forefront of India’s electric vehicle revolution, and Ultraviolette is the Tesla of India. Their success is a testament to our vibrant ecosystem for innovation.”

Founded in 2016 by Narayan Subramaniam and Niraj Rajmohan, Ultraviolette has set its sights on becoming a significant player in the global electric vehicle industry. The company has attracted investments from Lingotto, Qualcomm Ventures, Zoho Corporation, TVS Motors, and Speciale Invest.

The F77 MACH 2, designed and produced in India, has a 10.3 kWh battery pack, the largest in the country. It also features cell-level fuse technology and an IP-67 rated enclosure.

For its European market entry, Ultraviolette will focus on Italy, Spain, France, Germany, and the UK. The F77 MACH 2 is expected to be priced between €9,000 to €11,000 in Europe, depending on government incentives and taxes.

Ultraviolette’s manufacturing facility, spread over 70,000 sq ft in Bengaluru’s Electronics City, has an initial production capacity of 15,000 electric motorcycles per year. The company plans to increase this to an annual capacity of 120,000 units.

In a Series D funding round in 2022, Ultraviolette raised $10 Mn from Amsterdam-based Exor, valuing the company at $300 Mn. The startup competes with other electric two-wheeler manufacturers in India, including Revolt, Pure EV, Ola Electric, Ather, TVS, and Hero.

In the future, Ultraviolette plans to expand its presence in more Indian cities over the coming year. The company is also developing the F99 Factory Racing Platform, with a global commercial launch expected by 2025.

This move comes amid growing interest in electric vehicles in India, with the government setting a target of 30% electric vehicle adoption by 2030.

In March 2024, the government announced a new policy reducing import taxes on EVs for companies committing to local manufacturing. Earlier this month, Maruti Suzuki announced plans for its first electric vehicle, set to launch in early 2025. The mid-size electric SUV will feature a 60 Kilowatt-hour battery with a range of 500 km on a single charge.

The post Ultraviolette Begins Exports Of Its Made-In-India E-Bikes To EU appeared first on Inc42 Media.

Visa processing platform Atlys has raised $20 Mn in a Series B funding round co-led by Peak XV Partners (formerly Sequoia Capital India) and Elevation Capital. 

The round also saw participation from existing investors, as well as new investors DST Global and Headline.

The fresh capital will drive Atlys’ expansion strategy, enabling it to improve product and engineering capabilities, enter new markets, and scale operations globally.

The company claims to have achieved 20X expansion over the past year. It has broadened its presence in key global markets, including the US, UAE, and the UK, while enhancing its leadership team with top-tier hires in product, engineering, and marketing, the company said in a statement.

Mohak Nahta, founder and CEO of Atlys, said, “This investment will enable us to continue scaling globally and ensure that travellers can obtain their visas on time, every time. As India’s outbound tourism surges, the need for a seamless, on-time visa process is more critical than ever. We are one step closer to a world where borders no longer restrict exploration.”

Shraeyansh Thakur, principal at Peak XV, added, “Travel continues to see strong tailwinds globally and our thesis is that visas are just the starting point.”

Mayank Khanduja, partner at Elevation Capital, said, “This new round of funding is a testament to the progress they’ve made, and we’re excited to support them as they scale into new markets and continue redefining what seamless travel looks like. ”

Atlys last raised Series A funding in 2023 from Peak XV partners, Elevation Capital, a seed round led by Andreessen Horowitz (A16Z) in 2021 and a pre-seed round led by South Park Commons.

Founded by former Pinterest engineer Mohtak Nahta in 2020, Atlys is an online visa platform that claims to ensure on-time delivery of visas. The startup claims to provide the applicants an exact timeline for their visa arrival.

Atlys has processed over 5 Lakh+ visas to date and facilitates e-visa applications for more than 100 countries from India, including destinations like the UAE, Australia, Japan, Malaysia, Argentina, Russia, and Sri Lanka.

The platform allows users to apply for a visa in under three minutes and recently introduced a refund feature to enhance financial security in case of visa rejection. Users can receive a refund of up to INR 8,000 if their visa application is denied, unless they are banned from entering the country.

Atlys operates in both B2B and B2C segments, competing with companies like VisaHQ and iVisa.com.

The post Visa Processing Platform Atlys Raises $20 Mn To Boost Product Stack, Expand Market Footprint appeared first on Inc42 Media.

Chinese smartphone maker Xiaomi has called on India’s antitrust watchdog to withdraw its report that accused the company of colluding with ecommerce giant Flipkart to breach the country’s competition laws.

In a letter to the Competition Commission of India (CCI), Xiaomi expressed concerns about some sensitive company data in the regulator’s report on Flipkart, including model-wise sales, Business Standard reported, citing sources.

The Chinese smartphone maker has suggested that CCI ask the parties privy to the report to return the document and destroy any copies, and then issue a new one after redacting sensitive information, as it has previously done in the case of tech giant Apple, the report added.

The development comes on the heels of reports saying that a CCI investigation found that Xiaomi, Samsung and other smartphone makers colluded with Flipkart and Amazon to favour select sellers and launch their products exclusively on the ecommerce firms’ shopping websites in breach of India’s antitrust laws.

While Xiaomi has asked CCI to recall its report on Flipkart, it has not expressed concern about the regulator’s report on Amazon, which also accused the Chinese smartphone maker of flouting the country’s competition laws.

Notably, Xiaomi continued to dominate the Indian smartphone market with a 21% market share as of July 2024, with Samsung grabbing the third position, data from Counterpoint showed.

Ecommerce giants Flipkart and Amazon are facing a fresh antitrust headache: the CCI has reportedly sought financial statements of the two companies to determine the penalty on the duo was found guilty of giving preferential treatment to certain sellers on their shopping website, and thereby, violating local competition laws.

The regulatory action against Flipkart and Amazon is part of the government’s broader crackdown on the big tech firms facing scrutiny for alleged anti-competitive business practices. 

While Google has had to pay hefty fines and undertake sweeping changes to its India operations in response to CCI’s crackdown, Apple too has been pulled up by authorities for abusing its dominance in the app marketplace segment.

The post Xiaomi India Calls For CCI To Withdraw Flipkart Antitrust Report Over ‘Sensitive Data’ appeared first on Inc42 Media.