New Delhi, May 9 (IANS) US-based asset management firm Vanguard has sharply reduced the valuation of ride-hailing company Ola to $1.25 billion, according to its latest filing with the US Securities and Exchange Commission (SEC).
This marks a significant drop of over 80 per cent from Ola’s peak valuation of $7.3 billion in 2021.
Earlier in February 2024, Vanguard had valued the Bhavish Aggarwal-led company at $1.88 billion for the first time, later revising it slightly upward to around $2 billion in November last year.
The latest markdown comes as Ola continues to lose ground in India’s competitive ride-hailing market, even as it eyes a public listing.
Currently, Ola has slipped to third place in daily ride volumes, trailing behind Rapido and Uber.
Rapido, backed by Swiggy, has emerged as the new market leader, offering bike taxis, autos, and cab services.
The company became a unicorn last year after raising $200 million at a valuation of $1.1 billion.
In August 2024, Ola CEO Bhavish Aggarwal announced the rebranding of Ola Cabs to Ola Consumer, bringing together various services like financial products, cloud kitchens, and electric logistics under one brand.
Although Ola converted into a public entity in November 2024 and has been exploring IPO possibilities since then, no firm steps have been taken so far.
Market analysts now expect the company to delay its IPO by at least six months due to weak market conditions and falling valuations, particularly for its electric vehicle arm Ola Electric.
Meanwhile, ratings agency ICRA has downgraded the debt rating of Ola Electric Mobility Limited’s automotive unit due to slower-than-expected sales and a challenging road to profitability.
The agency lowered the rating of four debt instruments of Ola Electric Technologies Private Limited from ‘A’ to ‘BBB+’ and maintained a negative outlook, citing the company’s delayed sales growth in electric two-wheelers.
ICRA contended that Ola Electric has struggled to ramp up its electric two-wheeler sales, leading to higher cash burn and pushing back the company’s path to profitability.
As a result, the company may need to raise additional funds in the next 12 to 24 months as its existing cash reserves continue to deplete.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
