Vanguard slashes ride-hailing giant Ola’s valuation by 52%: Report

Ride-hailing giant Ola has experienced a significant reduction in its valuation by the US index fund pioneer Vanguard, said a report on Tuesday. The investment firm has slashed the worth of its holding in Ola by more than half since its original investment, marking a notable downturn in the startup's financial standing, reported TechCrunch.

Vanguard disclosed a 51.6 per cent reduction in the value of its shares in ANI Technologies, Ola's holding firm, as of the end of May 2023. The asset manager marked down its Ola shares to $25 million, from the original purchase price of $51.7 million.

This markdown implies a decrease in Ola's valuation to approximately $3.5 billion, a significant drop from its previous valuation of $7.3 billion at the close of 2021.

This development is indicative of the challenging market conditions faced by Indian startups, particularly in the wake of a weakening global economy, which has significantly impacted market capitalisations across numerous public companies.

Ola is not alone in this predicament, joining a growing list of high-profile Indian startups that have had their valuations reduced by investors. For instance, Invesco lowered the valuation of food delivery giant Swiggy by almost half to $5.5 billion earlier this year.

Irrespective of these challenges, Ola has managed to raise more than $3.9 billion in funding over the years, as per the public data.

Recently, IPO-bound Ola Electric recorded an operating loss of $136 million on a revenue of $335 million in the last financial year which concluded in March.

Ola sold about 21,400 electric scooters in March - the last month of the fiscal year 2022/23.

Since it began sales in late 2021, Ola has become India's e-scooter market leader with a 32% share, competing with Ather Energy as well as companies like TVS Motor and Hero Electric. It was valued at $5 billion last year and has raised nearly $800 million from investors since 2019.

Also Read: ED raids Hero MotoCorp CEO Pawan Munjal’s residence in connection with DRI case

Also Watch: 43-inch TV, VIP recliner seats, glass flooring: Here’s how DC2's modified Toyota Innova Hycross looks