Vanguard Reduces Ola Cabs’ Valuation by 30%

Ola Cabs, one of India’s leading ride-hailing companies, has faced a significant valuation cut by US asset manager Vanguard, one of its investors. According to a regulatory filing, Vanguard has reduced Ola’s valuation by 30% to under $2 billion, marking its third consecutive markdown in the past year.

What does this mean for Ola?

Ola Cabs, which was founded by Bhavish Aggarwal in 2010, has been competing with global rival Uber for market share in India, one of the world’s most populous countries. The company has raised funds from prominent investors such as Softbank, Tiger Global and Vanguard, and was valued at $7.3 billion in its latest funding round in 2021.

However, the company has been struggling to achieve profitability amid a fierce price war with Uber, as well as regulatory challenges and new entrants in the mobility sector. Ola’s losses narrowed by 65% to Rs 1,083 crore (about $130.5 million) in fiscal 2023, but its revenue also declined by 39% to Rs 2,155 crore (about $260 million).

The valuation cut by Vanguard reflects the challenges that Ola faces in its core business, as well as the uncertainty around its future growth prospects. Vanguard, which bought shares worth $50 million in Ola in 2015, now values them at $13.3 million, a 29% decline from its previous valuation of $25 million.

What are Ola’s plans for the future?

Despite the valuation cut, Ola is not giving up on its ambitions to expand its offerings and reach new markets. The company has spun off its electric vehicle unit, Ola Electric, into a separate entity in 2019, and is now planning to launch an initial public offering (IPO) for it. Ola Electric aims to raise $662 million in the IPO, which would value it at $5 billion.

Ola Electric is betting on the growing demand for electric scooters in India and abroad, and has set up a manufacturing facility in Tamil Nadu that can produce 10 million units annually. The company claims to have received over 1 lakh bookings for its first product, the Ola S1 electric scooter, within 24 hours of opening reservations.

Ola is also diversifying into other segments such as artificial intelligence (AI) and cloud computing. Aggarwal, who is also the CEO of Ola, has launched a new AI startup called Krutrim in January 2024, which aims to provide AI solutions for enterprises and governments. Krutrim has raised $50 million from Matrix Partners India and other investors at a valuation of $1 billion.


Ola Cabs is facing a tough time as its valuation has been slashed by one of its investors, Vanguard, by 30% to under $2 billion. The company is facing stiff competition from Uber and other players in the ride-hailing market, and is yet to turn profitable. However, Ola is also exploring new opportunities in the electric vehicle, AI and cloud sectors, and hopes to regain its momentum in the future.

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