Ola CEO Bhavish Aggarwal to step down from day-to-day management of the company

Tuesday, 12 April 2022 (1 month ago) 26 views
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Bangalore: two days later Ola’s electric scooter On Fire, Chief Executive Officer (CEO) Bavish Agarwal An internal notice was sent saying he would be leaving the day-to-day operations of many of the mobility company’s core businesses and instead focus on engineering, product and team building for future businesses such as electric vehicles (EV) and fast commerce. ET reviewed an email sent by Aggarwal on March 29.

Aggarwal said in the report that the chief financial officer (CFO) of Ola Group Allen GR It will now be handed over to an expanded role to “drive day-to-day operations across the group”. Arun is still CFO Ola Electric In addition to temporarily leading the company’s fintech arm, Ola Financial Services, and has been working across many of the company’s businesses, including Ola Electric, auto retail and fast commerce, the report said. He joined Ola last May after spending eight years at Vedanta Resources Plc and then at General Electric for eight years.

“I will be spending more time on all engineering functions, team building and product,” Aggarwal said in an email to all employees. “I will also focus more on our long-term strategic projects, including new 2W (two-wheeler) products, automotive projects, rapid business innovation, electric ride-hailing, our (battery) battery R&D and factories, international expansion, building our The Pune Technology Centre and future foundation, UK, etc. “

The internal restructuring comes as Ola faces several challenges. Its newly launched electric scooter caught fire in Pune on March 27, and many customers have been complaining about the scooter, leading to wider scrutiny of electric vehicles.

While Ola Electric is investigating the issue, the root cause of the problem has yet to be found, but the electric vehicle company plans to work closely with component and battery makers to pinpoint the safety issue, as it could make EVs in the country.

Ola is acquiring as top management changes take effect Available Finances, founded by Aggarwal’s brother Ankush Aggarwal in a $50 million share swap deal. ET reported on April 11 that the board of directors had approved the related party transaction. Ankush is expected to lead Ola Financial Services, according to people familiar with the matter. ET has reported that he will be primarily responsible for the lending business.

On the eve of the IPO, Ola was actively seeking to diversify and position itself as a super-app with several new high-growth businesses, such as a used car marketplace and online grocery delivery.

In December, the mobility company raised $139 million from Edelweiss and IIFL at a $7.3 billion valuation. ET first reported the deal on Nov. 12.

ET also reported on Dec. 16 that Ola has raised $500 million in debt financing through a term loan (B), commonly known as a TLB, to support many of these businesses — from fintech to express commerce and the used car market . A TLB is a loan that can be repaid in five or seven years. Much of the principal only needs to be repaid later in the loan term, giving the borrower flexibility.

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