US investment major Vanguard cuts Ola's valuation by 29% to below $2 billion

Ola Valuation: A fund operated by US investment major Vanguard has slashed Ola's parent ANI Technologies' valuation by 29% to $1.88 billion as of November 29. It's previous fair value was at $2.65 billion.

This latest fair value of $1.88 billion is 74% lower than the last valuation at which the company raised money. Fair value is an asset's sale price. The Bhavish Aggarwal-led company had last raised $139 million back in December 2021 in a funding round led by Edelweiss PE that valued Ola at $7.3 billion.

Ola's valuation

Earlier, Vanguard revised the valuation of its shareholding in the ANI Technologies by 24% from $3.5 billion, which was the value as of May 31 last year.

On January 10, ET reported that ANI Technologies narrowed its standalone loss by 65% to Rs 1,082 crore in fiscal 2023. The firm had incurred a standalone net loss of Rs 3,082 crore in FY22, according to the company’s partial financial results shared on its website. The ride-hailing platform’s sales jumped 63% to Rs 1,987 crore from Rs 1,220 crore.

Also Read: Ahead of IPO, Ola electric slashes sales target: Report

Ola Cabs’ new chief executive officer Hemant Bakshi had said that fleet-wide electrification, and premiumisation will drive growth for the ride-hailing company going ahead. He further added that, the firm's EBITDA in FY23 turned profitable.

ANI Technologies holds 4.35% stake in Ola Electric which is set for an Initial Public Offering with a valuation of $7-8 billion.

Valuation Revision

Along with Ola many other Indian consumer internet companies have seen their valuations being revised by US investors in recent weeks. Funds managed by financial services giant Fidelity reduced the valuation of Meesho and Pine Labs last month.

Meanwhile, Invesco had increased the valuation of food delivery platform Swiggy by 9% to $8.5 billion. Crossover funds holding stake in both publicly traded and privately held companies, periodically review the valuation of their portfolio companies.