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Ola Takes Another Hit, Vanguard Slashes Its Valuation By 29% To $1.8 Billion

This is the second time in two months when US-based Vanguard has slashed the valuation of the Bengaluru-based Ola which is preparing to go public

Ola Takes Another Hit, Vanguard Slashes Its Valuation By 29% To $1.8 Billion
Bhavish Aggarwal, co-founder of Ola Cabs and Ola Electric
POSTED ON February 06, 2024 10:31 AM

US-based investment firm Vanguard has slashed the valuation of Ola ahead of its IPO drive. The firm has slashed the company’s valuation to $1.88 billion as of November 30, 2023, marking a decline of 29 per cent from $2.65 billion earlier. 

According to the regulatory filing, the investment firm has marked down Ola's valuation by 74 per cent from its peak valuation of around $7.3 billion, The Economic Times reported.

This is the second time in two months when Vanguard slashed the valuation of the Bengaluru-based company which is preparing to go public. Till now, the investment firm has reduced Ola's valuation six times.

On January 10, ET reported that ANI Technologies, the parent company of Ola, reduced its standalone loss by 65 per cent to Rs 1,082 crore in fiscal 2023. The company had experienced a standalone net loss of Rs 3,082 crore in FY22, as per the partial financial results disclosed on its website. The ride-hailing platform saw a 63 per cent increase in sales, reaching Rs 1,987 crore from Rs 1,220 crore.

Ola announced earlier last year that its Indian mobility business has touched the break-even point (The point at which a company's total cost and total revenue are equal) with a ‘segment-adjusted’ EBITDA of about Rs 250 crore in FY23 against an EBITDA loss of Rs 66 crore in the year-ago period.

The company has filed its Draft red herring prospectus (DRHP) with the market regulator Security and Exchange Board of India (SEBI) making it the first auto company to issue an IPO after a long time of almost 20 years.

According to reports, Ola Electric's IPO could be worth around Rs 8500 crore or around one billion dollars. Ola Electric's IPO will be included in the top 15 issues of the country in terms of size. The company is also expected to become the first pure-play electric vehicle (EV) manufacturer to list on the Indian stock exchange.

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