The Ola Group Pauses Foods Business Ola Electric Financial Downturn confirms a major portfolio restructuring. Facing a severe funding crunch and sales decline, the group is shedding non-core assets like Khichdi Experiment to inject critical capital into its struggling core EV business.
Ola Group Pauses Foods Business Ola Electric Financial Downturn
The Indian startup ecosystem is witnessing a sharp strategic pivot by the Ola Group, led by founder Bhavish Aggarwal. The company has temporarily paused operations of its non-core cloud-kitchen vertical, Ola Foods, signaling a drastic course correction driven by immense financial pressure from its struggling listed entity, Ola Electric Mobility Ltd. The move, which saw the popular food delivery option disappear from the Ola ride-hailing app and the ONDC platform, is a clear indication that the group is consolidating all available resources to stabilize its core electric vehicle (EV) business amidst a deep financial downturn.
The shutdown of Ola Foods—which operated proprietary cloud kitchen brands like Khichdi Experiment and Biryani Experiment—marks the latest retreat from the competitive food delivery market, following previous exits from used cars (Ola Cars) and quick commerce (Ola Dash). This pattern suggests that Ola’s ambitious attempts at business diversification have consistently failed to achieve the necessary scale and sustainable unit economics.
The true reason behind the food business pause lies in the rapidly deteriorating financial and operational health of Ola Electric. Despite a high-profile IPO months ago, the company’s stock price has plummeted by over 75%, and its quarterly results have painted a grim picture: a staggering 43% year-on-year revenue decline and persistent net losses. The company has revised its annual sales outlook downwards by approximately 40%, reflecting a massive slump in sales volume and market share loss to aggressive rivals like TVS, Bajaj, and Ather Energy.
