New Delhi— U.S.-based investment firm Vanguard has significantly reduced the valuation of Indian ride-hailing giant Ola to $1.25 billion, according to its latest filing with the U.S. Securities and Exchange Commission (SEC), marking an over 80% drop from the company’s peak $7.3 billion valuation in 2021.
This downgrade reflects Ola’s ongoing struggles in India’s competitive mobility market. Once a dominant player, the Bhavish Aggarwal-led company now trails Uber and the rapidly growing Rapido, which has emerged as the new market leader after raising $200 million last year and offering a range of transport options including bike taxis, autos, and cabs.
Vanguard first valued Ola at $1.88 billion in February 2024, later adjusting it to around $2 billion in November. The latest markdown further complicates Ola’s plans for a public listing, which has been under consideration since the company transitioned into a public entity in November 2024. Analysts now expect any IPO to be delayed by at least six months amid weak market sentiment and concerns over Ola’s falling valuation.
In August 2024, Aggarwal announced a major rebranding, combining Ola’s various verticals—including financial services, cloud kitchens, and electric logistics—under the new umbrella “Ola Consumer.”
Meanwhile, Ola’s electric vehicle arm, Ola Electric, is also facing headwinds. Ratings agency ICRA recently downgraded four of the company’s debt instruments from ‘A’ to ‘BBB+’ and maintained a negative outlook, citing slow growth in electric two-wheeler sales and a longer-than-expected path to profitability. The company may need to raise additional capital in the next 12 to 24 months as it burns through existing cash reserves.
With valuation pressures mounting and its market position slipping, Ola now faces an uphill battle to regain investor confidence and stabilize operations across its core and EV businesses. (Source: IANS)
