Oyo revives IPO plans; Ola lays off 200 more engineers

Oyo Hotels & Homes, which filed an initial public offering in October 2021 but postponed it earlier this year due to the pandemic and global macroeconomic headwinds, is relaunching plans for a stock market debut after cost cuts and resuming travel helped him reduce weight

OYO

Also in this letter:
■ Ola lays off 200 more engineers in new round of layoffs
■ New technology opens an umbrella over flood-affected vehicles
■ Most Indians will not use print-on-demand services: report


Oyo seeks to revive IPO plans as growth resumes

OYO Debt Financing

I hear it rekindle plans for a stock market debut after cost cuts and the resumption of travel helped it cut losses.

Driving the news: The hotel reservation company filed new financial documents on Monday and is now targeting an initial public offering (IPO) in early 2023, provided the Indian stock market continues to hold up and economic conditions improve, sources told Bloomberg.

The company, officially known as Oravel Stays Ltd, is working internally on an IPO in January, with executives encouraged by a pick-up in demand, the sources said.

This has filed preliminary IPO documents in 2021only to suspend the enrollment plan earlier this year after the pandemic hurt its growth and forced it to cut thousands of jobs.

Read also | SoftBank-backed Oyo reportedly weighs 50% less in IPO as markets slump

Financial: The company said in its IPO filing addendum on Monday that its losses have narrowed and sales have rebounded for the year ending March 2022 (FY22) and the following three months (Q1FY23).

Oyo reported operating revenue of Rs 1,459.3 crore in Q1FY23. Its restated loss for the quarter from continuing operations was Rs 414 crore. The company said this was its first positive quarter for Ebitda.

He said revenue from operations increased by 21% to Rs 4,781.4 crore in FY22 from Rs 3,962 crore in FY21 due to a resumption of travel demand, as movement restrictions have been lifted in its main markets. Its restated loss for FY22 from continuing operations was Rs 2,140 crore compared to FY21 FY 4,103 crore.

Southern comfort: We reported this month that Oyo was looking to strengthen its presence in South Indian markets and planned to add around 600 new hotels and homes to the area by December.


Ola lays off 200 more engineers in new round of layoffs

OLA BEGINS LAYOFFS

hello you have laid off about 200 engineers in its carpooling and fintech businesses in a new round of layoffs following the closure of its restaurant, used-car and fast-trade businesses in June, according to company sources.

The layoffs represent about 10% of the company’s 2,000 engineers.

Second round: Ola had laid off around 1,000 employees earlier this year as it sought to focus on its mass transit and electric vehicle businesses. Previously, Ola had ambitions to create a “super app” with multiple services such as cloud kitchens, used car sales, food and grocery delivery, and its basic transportation service.

We reported on September 18 that the company could further reduce costs, which could lead to a reduction in its number of engineers in the carpooling sector.

The new round of layoffs comes at a time when late-stage startups are struggling to raise funds amid global macroeconomic headwinds.

Bad scooter sales: Ola also struggled to sell its flagship electric scooter, the S1 Pro, following a fire involving one of its vehicles in March. Following the decline in sales, the company has launched a sub-Rs 1 lakh scooter in August and has since opened physical experience centers to boost sales.

Ola started making electric scooters last year and plans to start producing electric cars in 2024.

Media releases: We reported on August 31, citing sources, that Ola Electric’s advanced battery engineering manager Ashok Saraswat resigned from the companyjoining at least half a dozen senior executives who have left the company in the last six months.


New technology opens an umbrella over flood-affected vehicles

urban flooding

Frequent urban flooding and the resulting collateral damage to motor vehicles create a technology-driven industry aimed at improving predictive modeling and speeding up claims processing for auto insurers, as well as mitigating losses for vehicle owners.

What is happening? According to insurers, the technological tools used range from disaster modeling and artificial intelligence (AI)-based software to data mining and claims processing automation.

Flooding in the tech capital of Bengaluru this month has sparked new demand for tech tools from car insurers and car care providers, who are inundated with claims. This mirrors earlier such examples in Chennai as well as Mumbai and Delhi.

Read also | CM pledges to solve water problems as rains hit Bangalore’s tech suburbs

RMS, a Moody’s analysis company, incorporated 1.25 lakh of simulated floods in more than 9,000 watersheds across the country into its latest flood model, the company told us.

Flood risk events make up a third of natural catastrophe losses in India, RMS says, adding that risk models can also be directly integrated into underwriting systems and the insurer can use the models to filter levels. of risk.

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Most Indians won’t use print-on-demand services like Blinkit: report

indian fortune

Only 14% of Indian consumers would use fast delivery platforms to have their printed matter delivered to their homes, according to a report published on Monday. Blinkit, owned by Zomato, recently started offering printing services.

By the numbers: Of those who want to use such a service, 7% said they would do so for “convenience,” and a further 7% said they would use it for both the convenience and the price factor, according to the report from the community social media platform LocalCircles.

However, 82% of households said they had no intention of switching to a delivery platform for their printing needs, whether for privacy reasons, a reluctance to change their current practice use of home printers or nearby store services, or both.

Is it enough? Whether the demand from just 14% of households is enough to sustain the printing services of fast delivery companies will determine whether the initiatives succeed or fail.

Blinkit’s bet: Blinkit owned by Zomato announced in August that it would deliver prints to users’ doorsteps in 11 minutes. The fast delivery platform was recently acquired by Zomato for Rs 4,447 crores.


Bitcoin Falls Below $19,000 As Cryptos Crack On Risk Of Rising Rates

crypto

Cryptocurrencies fell to new lows on Monday on regulatory concerns and as investors around the world shunned risky assets with interest rate hikes looming around the world.

By the numbers: Bitcoin, the largest crypto asset by market value, fell around 5% to a three-month low of $18,387.

Bitcoin

Credit: Yahoo finance

Ether, the second-largest crypto asset, fell 3% to a two-month low of $1,285 and is down more than 10% in the past 24 hours. Most of the other smaller chips were deeper in the red.

No fusion boost: The Ethereum blockchain, which underpins the ether token, got a major update last week called the merge that changes the way transactions are processed and reduces energy consumption.

Read also | Ethereum’s ‘Merge Day’ lifts the lid on India’s Web3 community

The token’s value fell amid speculation that remarks last week by U.S. Securities and Exchange Commission Chairman Gary Gensler implied the new structure could attract additional regulation. The exchanges around the upgrade have also been resolved.

Read also | The Best and Worst of Crypto

Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant in Mumbai and Gaurab Dasgupta in New Delhi. Graphics and illustrations by Rahul Awasthi.