Vanguard further slashes Ola's valuation to $1.9 billion: Report

Ride-hailing company Ola, operated by parent ANI Technologies, has seen a significant reduction in its valuation by the US investment firm Vanguard. The latest markdown positions Ola's fair value at approximately $1.88 billion, which is a 29% decrease from its previous valuation of $2.65 billion as reported in August of the prior year. This new valuation represents a stark contrast to Ola's peak valuation of $7.3 billion at the end of 2021, indicating a substantial 74% drop from its highest point.

The devaluation comes amidst a series of adjustments made by Vanguard over time. Earlier in May of the previous year, Vanguard had valued the company at $4.8 billion, only to further reduce it to $3.5 billion in August. By November 30, 2023, regulatory filings with the US Securities and Exchange Commission (SEC) revealed that Vanguard had marked down ANI Technologies to the current valuation of $1.88 billion.

Vanguard possesses 166,185 shares of ANI Technologies, constituting approximately a 0.7 percent stake in the ride-hailing startup, as per data compiled by Moneycontrol through Tracxn.

This downward trend in valuation reflects broader market dynamics and investor sentiment towards Ola and similar consumer internet companies. It is noteworthy that the last funding round for Ola took place in December 2021, led by Edelweiss Private Equity, which at the time valued the company at $7.3 billion. Since then, the company has not raised additional capital at a higher or equivalent valuation.

Despite ANI Technologies reducing its net loss in the past fiscal year, a series of markdowns have occurred. In FY23, the company disclosed a net loss of Rs 772 crore, a significant improvement from the Rs 1,522 crore loss in FY22. Simultaneously, its consolidated revenue surged by almost 42 percent year-on-year, reaching Rs 2,799 crore.

Ola Electric, an associate firm of Ola that manufactures and sells electric scooters, is preparing for an initial public offering (IPO) and aims for a valuation between $7-8 billion. However, the parent company's reduced valuation could potentially impact perceptions of Ola Electric's forthcoming IPO.

The reduction in Ola's valuation by Vanguard is part of a broader trend where several Indian startups have faced valuation cuts by their investors, reflecting a recalibration of expectations and market realities for these high-growth firms.

In the previous month, Fidelity reduced Meesho's valuation from its earlier $5 billion to $4.1 billion. During the same period, Pine Labs' valuation declined from $4.7 billion on August 31, 2023, to $3 billion as of October 31, 2023.

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