Indian ride-hailing giant Ola sees its valuation cut by 52%
As the ongoing challenges of the global market continue to bite down on Indian startup investment, many high-profile Indian startups are experiencing valuation reductions as investors reassess their positions.
One example is the Bengaluru-based ride-hailing unicorn Ola, which has seen its valuation cut by over 50% by Vanguard, the U.S. index fund pioneer, according to recent filings.
Asset manager, Vanguard, reduced the worth of its shares in Ola from the original $51.7 million purchase price to $25 million. This sharp decrease in valuation now places Ola's worth at approximately $3.5 billion, a significant drop from $7.3 billion at the end of 2021.
Despite raising substantial funds of over $3.9 billion over the years according to Crunchbase, Ola, like many other Indian startups, is feeling the impact of the challenging global market conditions.
Ola joins a growing list of high-profile Indian startups facing valuation reductions by investors, such as Swiggy – which saw its valuation lowered by almost half to $5.5 billion; Byju's – with valuation slashed to about $5.1 billion by Prosus NV, and SaaS startup Gupshup – as Fidelity trimmed its holding in the startup by more than half.
These valuation cuts underscore the evolving dynamics in India's startup ecosystem, with investors carefully reassessing their equity value amid the changing market conditions.
