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Ola Witnessed Losses In FY2016 As Costs Rise

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OLA WITNESSED LOSSES IN FY2016 AS COSTS RISE,Startup Stories,Startup Stories India,Inspiration Stories,2017 Most Read Startup Stories,OLA Cabs,OLA Cab Latest News,ANI Technologies Pvt,SoftBank,Ratan Tata,Falcon Edge

ANI Technologies Pvt., Ltd., operating under the trade name Ola witnessed a heavy loss in the fiscal year 2015-16. India’s largest cab aggregator Ola posted a consolidated loss of over Rs. 2,311 crores, which estimates a loss of Rs. 6 crore per day.

This major loss occurred because of heavy advertising and promotional expenses as well as high employee cost so as to give a tough competition to it’s American rival Uber, in order to grow its market share.

However, ANI Technologies Pvt., Ltd., witnessed a stellar growth in its revenues when compared to last year’s results. The company had registered a seven fold growth at Rs. 758 crores during 2015-16 when compared to its Rs. 104 crores revenue a year ago.

According to the market industry analysts, the heavy loss incurred this year was due to advertising, initial driver incentives, huge customer discounts, as well as some major strikes in cities. However, there was a slight decrease in losses since the incentives for the driver fell down.

Employee costs of Ola went up more than 5 times to Rs. 379 crores in FY16. The advertising and sales promotion cost increased four-fold to Rs. 385.5 crores. Ola currently has around 5000 employees and after its acquisition of Taxi For Sure, the employee number went up to 6700 in early 2015, of which a large number was laid off in September 2016.

Ola is currently operated in 110 Indian cities which are quite high when compared to Uber which operates in 29 cities. The former has also been providing various services like Ola autos, Micro, Mini, Prime, Lux, Outstation, Share, Shuttle as well as e-rickshaws. And the company claims to have as many as 6,00,000 vehicles including all of the above.

Recently, Ola also raised $ 200 million from SoftBank, Ratan Tata and Falcon Edge.

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Piyush Anchliya Joins Cashfree Payments as CFO Amid Expansion in India’s Fintech Sector

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Cashfree Payments has appointed Piyush Anchliya as its new Chief Financial Officer (CFO), effective April 15, 2025. Anchliya brings over 15 years of experience in investment banking, corporate finance, strategy, and mergers and acquisitions, with senior roles at Barclays, Bandhan Group, and most recently as CFO of Bandhan AMC. He holds an MBA from IIM Ahmedabad and a B.Tech. from IIT Kharagpur.

In his new role, Anchliya will lead Cashfree’s financial strategy, optimize operations, and support the company’s next growth phase. He will report to CEO and Co-founder Akash Sinha, who highlighted Anchliya’s expertise as vital for sustainable scaling and strengthening the company’s financial foundation. Anchliya succeeds outgoing CFO Vikas Guru, who will assist during the transition.

Founded in 2015, Cashfree Payments processes over $80 billion annually for more than 800,000 businesses. The company recently raised $53 million in funding led by KRAFTON and Apis Growth Fund II and secured key RBI licenses, positioning it for accelerated growth in India’s fintech sector. Anchliya’s appointment comes at a pivotal time as Cashfree aims to expand its leadership in digital payments.

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Flipkart’s Jeyandran Venugopal Likely to Join Reliance Retail as CEO

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Jeyandran Venugopal, the outgoing Chief Product and Technology Officer of Flipkart, is set to become the CEO of Reliance Retail Ventures (RRV), the retail arm of Reliance Industries. His appointment, expected to be finalized in May after his exit from Flipkart, signals Reliance’s push to strengthen its retail business with a technology-first approach.

Venugopal brings extensive experience from leading roles at Flipkart, Myntra, Yahoo, Snapdeal, and Amazon, where he focused on scaling technology platforms and driving innovation. At Flipkart, he managed product, engineering, data science, and more, helping build robust systems and improve user experience.

His move comes as Reliance Retail undergoes transformation, including cost-cutting and a renewed focus on digital growth. Venugopal’s leadership is expected to accelerate Reliance’s ambitions in omnichannel and tech-driven retail, positioning the company for continued dominance in India’s evolving market.

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Delhivery’s Acquisition of Ecom Express: A Major Consolidation in Indian Logistics

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Delhivery, one of India’s leading logistics companies, has announced its acquisition of Ecom Express in an all-cash deal valued at ₹1,407 crore. This strategic move marks one of the largest consolidations in the logistics sector and is expected to enhance Delhivery’s scale, profitability, and operational efficiency.

Background

Ecom Express, founded in 2012 and headquartered in Gurugram, has faced significant financial challenges recently. The company canceled its IPO plans in 2024 and laid off hundreds of employees due to operational setbacks, including losing a major client, Meesho, which shifted to its in-house logistics service Valmo. These struggles led to a distressed sale, with private equity investors like Warburg Pincus and Partners Group exiting their stakes entirely.

Strategic Benefits for Delhivery

  1. Enhanced Scale: The acquisition will strengthen Delhivery’s network reach and infrastructure, enabling better service delivery across India.
  2. Operational Synergies: Combining operations with Ecom Express will improve efficiency and reduce costs through economies of scale.
  3. Competitive Edge: With Ecom Express as a subsidiary, Delhivery solidifies its leadership position in the logistics space by offering broader coverage and faster services.

Challenges Addressed

The acquisition mitigates risks from Ecom Express’ financial struggles while addressing past disputes between the two companies over inflated shipment volumes reported by Ecom Express during IPO filings.

Future Outlook

The deal is expected to close within six months after regulatory approval from the Competition Commission of India (CCI). Post-acquisition, Ecom Express will operate as a subsidiary of Delhivery, unlocking new growth opportunities such as advanced logistics technology integration and expanded customer reach.

With ₹5,488 crore in cash reserves as of September 2024, Delhivery is well-positioned to finance this acquisition without compromising financial stability. This move underscores Delhivery’s commitment to innovation and efficiency in India’s rapidly evolving logistics landscape.

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