Ola lost `6cr per day in FY 2015-16

New Delhi, April 30: SoftBank-backed cab aggregator Ola posted a consolidated loss of over `2,311 crore — about `6 crore a day — during fiscal 2015-16, on account of heavy advertising and promotional expenses and high employee cost.

The Bengaluru-based firm, which is locked in an intense battle for leadership with US-based Uber, has seen its losses widen about three times from `796.11 crore in 201415, Ola said in a filing with the Ministry of Corporate Affairs.

ANI Technologies — which runs Ola — did see its revenues registering a stellar growth at `758.23 crore during 2015-16 compared to `103.77 crore in the previous fiscal.

Emails sent to Ola remained unanswered.

Anchal Agarwal, cofounder of research and analytics firm Tofler said while the absolute amount of losses have indeed widened, the loss margin has “reduced considerably”.

“They spent almost `8.5 for every rupee earned in 2014-15. That number is down to almost `4 for every rupee earned for 2015-16. With the pullback in incentives etc in recent months, it’s possible this has now dropped to levels at par with ecommerce companies that spend roughly `2-3 for every rupee earned,” she added.

The consolidated numbers include financials of ANI Technologies, Ola Fleet Technologies (leasing business), Serendipity Infolabs (Taxi For Sure) and Zipcash Card Service (46 per cent ownership).

In August 2016, Ola shut down the TaxiForSure (TFS) business, about 18 months after acquiring the rival for $200 million.

As per the filing, Ola’s losses were widened on account of employee related expenses rising over five-fold to `461.60 crore in the said fiscal from `85.16 crore in 2014- 15.

Similarly, Ola expanded its advertising and promotional expenditure to over `437.89 crore in 2015-16 from `99.84 crore in the previous year.

Both Ola and Uber have loosened their purse strings to bring more riders and driver partners on board, offering them discounted rides and incentives, in a bid to wrest control of the lucrative Indian market.

Over the last few years, the explosion of smartphones has made it more convenient for consumers to book a cab on the go through apps and secure payment options.

ANI TECHNOLOGIES — which runs Ola — did see its revenues registering a stellar growth at `758.23 crore during 2015-16 compared to `103.77 crore in the previous fiscal