‘Ola can become as big as Infy with time’

OPTIMISTIC DRIVE Says India’s biggest taxi-hailing app is not over-valued, will hit profitability eventually

After ending his 16-year career with Infosys as the head of finance, Rajiv Bansal has moved to Ola as CFO. In an interview with HT, Bansal talks about his career move. Excerpts:

Why this big jump?

I was with Infosys for 16 years and became the CFO at the age of 40 — probably one of the youngest CFOs globally in a company of that size. At 43 I had to think of the next 17 years of my life. I couldn’t see myself doing this (remaining Infosys CFO) for the rest of my life.

Was it getting too monotonous?

Not monotonous. Infosys was a great, great journey. I joined Infosys in 1999 when it was $120 million company. From that to a $9 billion company (when I left), it was a massive growth. With the growth slowing down the challenges were very different. We were not creating any new value per se. I wanted to be part of action again. Ola was the right size and at the right stage of its evolution. I believe that if we execute this well... we can create an institution as big as Infosys here.

How can a hardcore finance professional make that difference?

It is not about a hardcore finance background. It is about experience. Have you been part of a growth story? Have you seen challenges? Have you seen multiple business cycles? Have you seen downturns? How did you handle those challenges? How do you allocate capital? These are the things that matter.

Internet-based unicorns (companies valued at over a billion dollars) are doggedly top-line driven without any sign of profitability. Do you see a scope to change this game?

Every business has to make profit eventually. Investors put in money because they want returns. I believe businesses that create value for stakeholders will eventually be profitable. When you have a customer base similar to Google you have changed consumer behaviour and you will be able to look at ancillary revenues.

What are your views on unicorn valuations? Are they over-valued?

I don’t think these companies are over-valued as they don’t follow traditional models. In the internet model it is very difficult to look at past trends and come to a valuation. You value a company on its fundamentals, its vision, market opportunity, strategy and execution, and the game plan. You have to become bigger quickly. Get a large market share as quickly as possible. I believe in this dream and I believe in this journey.