Vanguard slashes Ola's valuation by 52% to $3.5bn
What's the story
Vanguard has slashed the value of its stake in Indian ride-hailing start-up Ola by 51.6% since its initial investment.
The asset manager reduced its Ola shares' worth to $25 million, down from the $51.7 million purchase price years ago.
This implies a drop in Ola's valuation to around $3.5 billion, compared to $7.3 billion at the end of 2021.
Vanguard
Vanguard owns less than 1% of Ola's holding company
Vanguard last valued its shares in Ola at around $33.8 million in February this year.
The US-based asset management firm owns less than 1% of ANI Technologies, Ola's holding firm. It owns 1,85,000 shares via Vanguard World Fund and Vanguard Variable Insurance Fund.
The new valuation takes Ola back to its 2017 valuation, where the company raised about $330 million at around $3.5 billion.
Details
Global market conditions have impacted Indian start-ups
Ola isn't the only Indian company to see its valuation cut. The decline in global market conditions has affected Indian start-ups' valuations.
A capital market reboot has put profitability over growth and 'blitzscaling.' Start-ups like BYJU'S and Swiggy have also seen a reduction in their valuations.
However, a significant valuation adjustment by one investor may not represent the opinions of others.