Ola Cabs’ CEO Hemant Bakshi Quits, Company to Lay off 10% of its Employees

Hemant Bakshi, the CEO of ANI Technologies, the parent company of Ola Cabs, has resigned after just four months in the role. Bakshi, a former senior Unilever executive, joined Ola last September and was appointed CEO in January this year. Sources reveal that his departure coincides with a company-wide restructuring, expected to impact at least 10% of its 1800-strong workforce. 

Meanwhile, Ola Cabs is gearing up for an IPO to raise $500 million, valuing the company at around $5 billion. Sources reveal that the company intends to file the necessary paperwork with the Securities and Exchange Board of India (SEBI) within the next three months.

In the interim, Ola founder Bhavish Aggarwal will take over operations until a new executive is appointed. "Hemant (Bakshi) will be stepping down from his role as CEO to pursue opportunities outside the company. We extend our gratitude to Hemant for his contributions and wish him the best in his future endeavors," said Aggarwal in a letter to employees, a copy of which Business Standard has seen.

In a letter to employees, Aggarwal stated that Ola is undergoing a restructuring exercise to improve profitability in line with the company’s vision to serve 1 billion Indians and drive sustainable growth and efficiency. 

In January, Krutrim, India’s own AI company, dedicated to constructing a comprehensive AI computing stack had successfully closed its first funding round, securing a substantial $50 million in equity at a valuation of $1 billion.

The firm, which has made substantial investments in its AI initiative Krutrim and anticipates certain roles within the company to become redundant due to these changes. 

The restructuring is part of Ola's broader efforts towards profitability as it prepares for an initial public offering (IPO). "Hemant Bakshi...wants to pursue other opportunities," said a source familiar with the matter.