Ola Valuation Down to $1.9 Billion, a 74% Decline by Vanguard 

The US-based Asset Management Company (AMC) Vanguard has again adjusted the fair value of ANI Technologies, the parent entity of the ride-hailing platform Ola, marking the third consecutive reduction, according to the latest regulatory filings.

Ola’s current valuation hovers around $1.9 billion, marking a substantial decline of 74% from its earlier valuation of $7.3 billion secured during a $139 million funding round involving IIFL, Edelweiss PE, and other investors in December 2021.

This adjustment marks the third consecutive valuation cut for Ola by Vanguard. In May of the previous year, the AMC assessed the company’s value at $4.8 billion, followed by a further reduction to $3.5 billion in August 2023. Vanguard has previously revised Ola’s valuation downwards in both 2020 and 2021.

ANI Technologies, however, saw a reduction in its net loss in the last fiscal year. Despite this, Vanguard continued to revise its valuation downward. The company reported a net loss of Rs 772 crore in FY23, compared to Rs 1,522 crore in FY22, alongside a nearly 42% year-on-year increase in consolidated revenue to Rs 2,799 crore.

Vanguard currently holds 166,185 shares of ANI Technologies, constituting approximately 0.7% ownership in the ride-hailing startup, based on data compiled by Moneycontrol through Tracxn.

These valuation adjustments are occurring amidst a broader trend of reassessing startup valuations by investors. For instance, Invesco recently raised Swiggy’s valuation to $8.3 billion, marking the second consecutive increase. Conversely, Fidelity reduced Meesho’s valuation from $5 billion to $4.1 billion, while Pine Labs’ valuation stood at $3 billion as of October 31, 2023, down from $4.7 billion on August 31, 2023.

It’s essential to understand that these fair value adjustments are typically made based on AMC’s internal evaluations of the macro and microenvironment and may not necessarily reflect a permanent change in the startup’s overall valuation.