American investor Vanguard Group has slashed ride-hailing major Ola’s valuation by 35 per cent to $4.8 billion as compared to its peak $7.3 billion valuation.
Vanguard holds 1,85,355 shares in ANI Technologies through two funds including Vanguard Variable Insurance Funds and Vanguard World Fund. Overall, Vanguard’s share in Ola is less than 1 per cent, according to an SEC filing.
Ola last raised a $139 million funding round in December 2021 at a valuation of $7.3 billion. This development comes at a time when multiple start-up unicorns have seen a drop in valuations.
Other valuation cuts
US-based investor Invesco has also cut food delivery major Swiggy’s valuation to $5.5 billion in January 2023 from its last valuation of $10.7 billion in January 2022. Also in March 2023, Invesco slashed Swiggy’s valuation to $8-billion. Invesco had led a $700-million funding round in Swiggy in January 2022.
Similarly, Prosus, too, pegged BJYU’s valuation at $6 billion in November 2022. BJYU’s raised its last funding round at a valuation of $22 billion. In late 2022, Oyo’s valuation was also slashed from $10 billion to $2.7 billion by Japanese conglomerate, SoftBank.
In FY21, Ola reported its first operating profit of ₹89.82 crore, although its revenue saw a decline of 65 per cent to ₹689.61 crore. The company recorded a standalone operating profit (profit before finance cost, depreciation, amortisation, and tax (EBITDA)) of ₹89.82 crore in FY21, and a loss of ₹610.18 crore in FY20.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.