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Ola's Valuation Takes a Dive: Vanguard Marks Down to $1.88 Billion

Vanguard, a prominent US-based asset management firm, has once again revised down the valuation of Ola, one of India's leading ride-hailing companies, to below $2 billion. This marks the third consecutive reduction in Ola's valuation by Vanguard since February 2023. According to regulatory filings with the US Securities and Exchange Commission (SEC), Vanguard has now valued Ola's parent company, ANI Technologies, at $1.88 billion as of November 30, 2023, representing a significant 29% decrease from its previous valuation of $2.65 billion in August of the same year.


This development was first reported by Economic Times. The downward trend in Ola's valuation began in February of the previous year when Vanguard first marked down the fair value of its stake in Ola by 35% to $4.8 billion. Subsequently, in July, Vanguard further reduced its holding by an additional 52% to $3.5 billion.

It's notable that Ola was valued at a significantly higher $7.3 billion in 2021. Despite the valuation adjustments, ANI Technologies, Ola's parent company, demonstrated positive growth in its financial performance. In the fiscal year 2023, ANI Technologies reported a notable 42% increase in scale, reaching Rs 2,799 crore compared to Rs 1,970 crore in the previous fiscal year. Additionally, the company managed to substantially reduce its losses by nearly 50%, amounting to Rs 772 crore in FY23 as opposed to Rs 1,522 crore in FY22.


The markdown in Ola's valuation by Vanguard is reflective of a broader trend observed among late-stage startups, where investors are reassessing their valuations. Notably, prominent companies like Byju's, India's leading edtech firm, witnessed a significant 95% reduction in its fair value by investor Blackrock. Similarly, other startups like Meesho and Pine Labs also saw valuation cuts by Fidelity, while Swiggy experienced consecutive increases in valuation by Invesco. These fluctuations underscore the dynamic nature of the startup ecosystem and the evolving perspectives of investors in assessing the value and potential of such companies.


 

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