Vanguard cuts Indian ride-hailing giant Ola’s valuation by 52%


Share post:

The U.S. index fund pioneer Vanguard has cut the worth of its holding in the Indian ride-hailing startup Ola by more than half since original investment, according to an analysis of its filings.

Vanguard cut the worth of its shares in Ani Technologies, Ola’s holding firm, by 51.6% as of the end of May, it disclosed Monday. The asset manager marked down the holding of its Ola shares to $25 million, from the $51.7 million purchase price years ago, the filings showed.

The cut in worth of Ola shares’ by Vanguard implies a reduction in the ride-hailing startup’s valuation to approximately $3.5 billion, a decrease from $7.3 billion at the close of 2021. (Vanguard had valued its Ola’s shares at about $33.8 million at the end of February this year.)

Meanwhile, Ola co-founder Bhavish Aggarwal has set up an AI startup that seeks to develop a large language model and is currently scouting two U.S.-headquartered AI startups for a potential acquisition, TechCrunch reported earlier Tuesday. Aggarwal, who also co-founded electric vehicle startup Ola Electric, is also thinking of venturing into the semiconductor design space.

The Bengaluru-based company joins a growing list of high-profile Indian startups that have had their valuations reduced by investors. Invesco lowered Swiggy’s valuation by almost half to $5.5 billion in January of this year, while Prosus has slashed the valuation of Indian edtech giant Byju’s to about $5.1 billion. Fidelity has trimmed the worth of its holding of SaaS startup Gupshup by more than half, TechCrunch first reported Monday.

Recent valuation cuts shed new light on the impact of deteriorating global market conditions on Indian startups. Last year saw a dip in funding activities within India’s startup ecosystem, yet the valuations of many larger startups remained unaltered as they either raised capital through convertible notes (thus postponing price discovery) or chose not to raise funds altogether.

It is important to note that investors evaluate the equity value of their existing startup portfolios using various methods. As a result, a significant valuation adjustment by a single investor may not necessarily reflect the views of other investors.

Source link


Please enter your comment!
Please enter your name here

Related articles

Tesla Autopilot arbitration win could set legal benchmark in auto industry

In a victory for Tesla, a California federal judge ruled over the weekend that a group of...

Max Q: Mining moon water

Hello and welcome back to Max Q! In this issue: Mining water on the moon with Starpath Robotics News from...

Republicans still don’t know how to talk to young voters online

In an appeal to younger voters, Republican presidential candidate Vivek Ramaswamy — who proposed raising the voting...

Ousted Flexport CEO Dave Clark strikes back

Dave Clark, the former Amazon executive who was ousted as CEO of Flexport just a year into...