Ola projected to see profits by FY19

Ola projected to see profits by FY19

Cab hailing app Ola is projected to become profitable during 2018-19, and report a net operating profit of over Rs 1,170 crore, according to a valuation report filed with the corporate affairs ministry.

This is expected to grow further to Rs 6,423.33 crore by 2020-21, the document showed.

The SoftBank-backed firm, which is privately held, had posted a net operating loss after tax of Rs 2,781.70 crore in 2016-17.

The valuation report was compiled by chartered accountancy firm Jain Ambavat and Associates. It formed a part of Ola's disclosure that was made public earlier this month through the filing.

Ola, which has operations in 110 Indian cities, is locked in an intense battle for leadership with US-based Uber.

The Bengaluru-based firm's investors include Tencent Holdings, Tiger Global, Sequoia India and Accel Partners US.

Recent reports suggest that Tiger Global is looking at offloading a part of its stake in Ola and that SoftBank might increase its shareholding in the company.