Investor Cuts Ola Valuation to about $3 Billion
Wednesday, 10 March 2021, 13:55 IST
Investor Cuts Ola Valuation to about $3 Billion
Though the mobility sector is seeing gradual growth in India, Bangalore-based Unicorn Ola’s, valuation has been marked down by one of its investors, as reported by Capital Quest.
Ola’s valuation has been cut down by Vanguard Group, to nearly half on the onset of the Covid-19 pandemic which disrupted business. The report by Capital Quest says, The US-based investment firm Vanguard Group, which had first backed Ola in 2015, cut the value of its investment by 45 percent between Dec. 31, 2019, and June 30, 2020, and another 9.5percent recently, bringing down the company's valuation from a little over $6 billion to about $3 billion.
This is not the first time Vanguard has marked down the valuation of the firm. It had slashed Ola's valuation by 41 percent in 2017 but marked up in subsequent months. Vanguard is a minority investor with less than one percent in the firm.
The news comes at a time when Ola revealed its new growth plans, including setting up an Rs2,400-crore Electric vehicle facility in Tamil Nadu. It is expected to become the world's largest two-wheeler factory.
Ola, founded in 2010 by Indian Entrepreneur Bhavish Aggarwal and Ankit Bhati is an online cab aggregator founded in Mumbai and now based in Bangalore. The ride-sharing company offers services that include vehicles for hire and food delivery. Later, it diversified to incorporate auto rickshaws too.
"Ola, operated by ANI Technologies Pvt. Ltd, was one of the worst-hit technology startups in India as many companies switched to a work-from-home routine and curbed the travel demand. The company’s revenue plunged around 95 percent after India imposed a lockdown in late March 2020", said Bhavish Aggarwal.
The good sign is that Ola is recovering from the pandemic hit and also its food and finance businesses have shown a linear curve.
Though the mobility sector is seeing gradual growth in India, Bangalore-based Unicorn Ola’s, valuation has been marked down by one of its investors, as reported by Capital Quest.
Ola’s valuation has been cut down by Vanguard Group, to nearly half on the onset of the Covid-19 pandemic which disrupted business. The report by Capital Quest says, The US-based investment firm Vanguard Group, which had first backed Ola in 2015, cut the value of its investment by 45 percent between Dec. 31, 2019, and June 30, 2020, and another 9.5percent recently, bringing down the company's valuation from a little over $6 billion to about $3 billion.
This is not the first time Vanguard has marked down the valuation of the firm. It had slashed Ola's valuation by 41 percent in 2017 but marked up in subsequent months. Vanguard is a minority investor with less than one percent in the firm.
The news comes at a time when Ola revealed its new growth plans, including setting up an Rs2,400-crore Electric vehicle facility in Tamil Nadu. It is expected to become the world's largest two-wheeler factory.
Ola, founded in 2010 by Indian Entrepreneur Bhavish Aggarwal and Ankit Bhati is an online cab aggregator founded in Mumbai and now based in Bangalore. The ride-sharing company offers services that include vehicles for hire and food delivery. Later, it diversified to incorporate auto rickshaws too.
"Ola, operated by ANI Technologies Pvt. Ltd, was one of the worst-hit technology startups in India as many companies switched to a work-from-home routine and curbed the travel demand. The company’s revenue plunged around 95 percent after India imposed a lockdown in late March 2020", said Bhavish Aggarwal.
The good sign is that Ola is recovering from the pandemic hit and also its food and finance businesses have shown a linear curve.
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