Vanguard Cuts Ola’s Valuation by 52% in Latest Adjustment
- ByStartupStory | August 1, 2023
Vanguard, the world’s largest issuer of mutual funds, has made a significant reduction in the valuation of its stake in Ola, led by Bhavish Aggarwal, as per a regulatory filing on July 31. This marks the second time this year that the US investor has devalued its holding in the ridesharing company. Vanguard’s stake in Ola parent ANI Technologies, which was acquired for $51.7 million, is now valued at $25 million, implying a 52% reduction in Ola’s overall valuation.
According to TechCrunch, Ola’s current estimated value is now $3.5 billion, down from $7.3 billion at the end of 2021. In February, Vanguard had previously downgraded Ola’s valuation by 35%, pegging the value of its stake at $33.9 million.
The decline in Ola’s valuation is part of a larger trend in the startup ecosystem, where several major startups, including BYJU’S, Meesho, PharmEasy, and Swiggy, have experienced similar downgrades in valuation due to global economic challenges. Funding in the startup sector has also witnessed a sharp decline of over 70% in the first half of 2023.
Ola has raised approximately $4 billion in equity funding from notable investors like Tiger Global and Softbank. The company had explored the possibility of a $1 billion IPO in 2021 but eventually withdrew the plans. Ola Electric, Ola’s sister company, is now pursuing a $10 billion IPO and has initiated discussions with investment banks such as Goldman Sachs, Kotak, Citi, and Axis Bank.
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