Vanguard reduces Ola’s valuation by an additional 29% to $1.8 billion
- ByStartupStory | February 5, 2024
US investment management firm Vanguard has once again adjusted the valuation of Ola, the mobility company led by Bhavish Aggarwal, marking it down to $1.88 billion. This marks the third consecutive markdown by Vanguard since February 2023, according to US Securities and Exchange Commission (SEC) filings. The latest fair value is a 29% decrease from the previous valuation of $2.65 billion as of August 31, 2023, making it 74% lower than the last fundraising valuation.
Vanguard, holding about a 0.7% stake in Ola, didn’t comment on the valuation adjustment. Ola raised approximately $139 million in December 2021, valuing the company at around $7.3 billion. However, Vanguard’s recent markdown places the company’s valuation significantly lower.
Ola reported positive earnings before interest, tax, depreciation, and amortization (EBITDA) for its India mobility business in the fiscal year 2022-23, a notable achievement. The consolidated entity’s revenue for FY23 was Rs 3,000 crore, compared to Rs 2,120 crore in FY22, with the EBITDA loss reducing to Rs 29 crore from Rs 291 crore.
This isn’t the first time Vanguard has marked down Ola’s valuation; in 2017, it reduced the company’s valuation by 40%, signaling a valuation of about $3 billion. Subsequently, Vanguard marked up the valuation, but in recent years, it has seen periodic reductions.
Ola made strategic shifts in 2022, closing down services like in-cab infotainment, used vehicles business (Ola Cars), and quick-commerce unit (Ola Dash). The company redirected its focus towards Ola Electric, utilizing the infrastructure and capabilities of the Ola Cars business. Ola shut down various services, including Ola Café, Foodpanda, Ola Foods, and Ola Dash, as it shifted emphasis to its electric two-wheeler and car verticals.
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