US investment firm Vanguard slashes Ola's valuation by 35%

NEW DELHI: The US-based investment management company Vanguard has slashed ride-hailing firm Ola's valuation by 35 per cent amid global macroeconomic conditions, reducing its worth to about $4.8 billion.

According to a report in TechCrunch, Vanguard cut the valuation of Ani Technologies, Ola's holding firm, by 35 per cent and disclosed this in its report to investors.

"It reduced the holding of its Ola shares to $33.8 million from the $51.7 million purchase price, according to an analysis of its filings," the report noted.

Ola was valued at $7.3 billion at the close of 2021 and at $5.7 billion in a private funding round in January 2019.

The company did not comment on the report.

Ola's losses accumulated to Rs 17,453 crore as revenue shrank 63 per cent in FY21.

The company lost Rs 328 crore on its ride-hailing business and Rs 653.5 crore on the cab-leasing segment during FY21, according to reports.

In January this year, the ride-hailing major started to lay off 200 employees from its Ola Cabs, Ola Electric and Ola Financial Services verticals as part of the "restructuring" exercise.

The company had told IANS it was "centralising operations and is undertaking a restructuring exercise to minimise redundancy and build a strong lateral structure that strengthens relevant roles and functions".

Earlier, restructuring exercises impacted employees across product, marketing, sales, supply, tech, business, and operations verticals at the company, affecting nearly 500 employees that "were a result of restructuring in the cars and dash businesses".

The ride-hailing major had shut down its used vehicle business Ola Cars, as well as its quick-commerce business, Ola Dash, as the company shifted to focus on its electric two-wheeler and car verticals.