Vanguard marks down Ola's valuation to $1.9 billion, a 74% drop from peak

6 Feb 2024 , 10:14 AM

According to the most recent regulatory filings, US-based Asset Management Company (AMC) Vanguard has reduced the fair value of ANI Technologies, the parent company of ride-hailing service Ola, for the third time in a row.

Ola’s valuation after the new markdown is approximately $1.9 billion, which is 74% less than the $7.3 billion it was originally valued at when it secured $139 million in December 2021 from IIFL, Edelweiss PE, and other investors.

Vanguard has now reduced Ola’s valuation three times in a row with this latest action. Vanguard first estimated Ola’s valuation at $4.8 billion in May of last year, but they later revised that estimate down to $3.5 billion in August of 2023. Ola’s valuation was reduced by the US-based AMC in 2020 and 2021 as well.

Based on information gathered by sources via Tracxn, Vanguard owns 166,185 shares in ANI Technologies, or roughly 0.7 % of the ride-hailing startup.

Even if ANI Technologies lowered its net loss in the previous fiscal year, a series of markdowns still occur. Compared to a loss of ₹1,522 Crore in FY22, the company recorded a net loss of ₹772 crore in FY23. Concurrently, its consolidated sales climbed to ₹2,799 Crore, up roughly 42% on an annual basis.

Over the past six months, investors have adjusted startup valuations in all categories. As previously reported, Invesco recently increased Swiggy’s valuation to $8.3 billion, marking the second consecutive increase.

Meesho’s valuation was reduced by Fidelity last month from $5 billion to $4.1 billion, while Pine Labs’ valuation decreased from $4.7 billion to $3 billion as of October 31, 2023, according to reports. 

It is significant to remember that AMC’s internal evaluation of the macro and microenvironment usually serves as the basis for these modifications to fair values. They could not always signify a long-term increase or decrease in the startup’s total valuation.

For feedback and suggestions, write to us at [e-mail]