Less than a year after its debut, Ola has preferred to shut down its used car vertical Ola Cars. According to sources speaking to CNBC-TV18, the leader in shared mobility has also opted to shut down Ola Dash, its quick commerce division.
Both Varun Dubey, the head of marketing for Ola Electric, and Arun Sirdeshmukh, the head of Ola's used car division, recently left the company. Ola confirmed in an official statement that it has shelved Ola Dash, its quick commerce subsidiary, and would be revamping its car business to put a stronger emphasis on its EV division.
Ola aims to accelerate its investments in electric vehicles, battery production, and financial services. In the first two months of FY23, Ola Electric's sales reached Rs 500 crore, and the startup plans to introduce its second electric scooter by the end of the year.
It was recently reported that Ola, which had planned to list on the stockmarkets this year, was looking to attract a fresh round of funding at a reduced value, indicating a sudden reversal of fortune for startups following a record 2021 that saw sky-high valuations in both the public and private markets.
Ola was reportedly valued at $7.3 billion when it secured $139 million in its Series J round, backed by IIFL, Edelweiss PE, and Sunil Munjal-led Hero Enterprises, in what seemed to be its final round of investment before going public.