Leading US asset manager Vanguard has significantly reduced its holding in ride-hailing giant Ola, resulting in a substantial drop in the company’s valuation. According to media reports, the valuation of Ola, run by Bhavish Aggarwal, has been reduced to nearly $3.5 billion from $7.3 billion at the end of 2021.
Vanguard Marks Down Ola Shares
Citing Vanguard’s filings, a TechCrunch report reveals that the investment firm has devalued its shares in Ani Technologies, the holding company of Ola, by 51.6%. The worth of its Ola’s shares marks down to $25 million from the original purchase price of $51.7 million from years ago.
Previous Valuation Adjustments
Earlier this year, in February, Vanguard valued its Ola’s shares at approximately $33.8 million. However, in May, the company made another cut, reducing Ola’s valuation by 35% to about $4.8 billion due to global macroeconomic conditions.
Ola Electric’s Financial Performance
Ola Electric, which is gearing up for an IPO, has faced its own financial challenges. The company recorded an operating loss of $136 million (roughly Rs 1,116 crore) and revenue of $335 million (roughly Rs 2,750 crore), falling short of its publicly disclosed revenue goal.
Ongoing Challenges for Indian Unicorns
Ola joins the list of Indian unicorns that have experienced significant devaluation. Swiggy’s valuation lowered by almost half to $5.5 billion by Invesco earlier this year. Likewise, Fidelity, a leading US investment firm, reportedly reduced the estimated worth of its holding in Gupshup, a homegrown conversational engagement platform, by over 20% within a month. The fluctuating valuations of these startups highlight the challenges they face in navigating the ever-changing market dynamics.
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