Vanguard Slashes Ola's Valuation to $1.25 Billion Amid IPO Uncertainty

By siliconindia  |  Saturday, 10 May 2025, 09:59:31 AM IST

Vanguard Slashes Ola's Valuation to $1.25 Billion Amid IPO Uncertainty
  • Vanguard cuts Ola’s valuation to $1.25 billion, down over 80% from its $7.3 billion peak in 2021.
  • Ola slips to third place in India’s ride-hailing market, behind Rapido and Uber.
  • Ola’s IPO expected to be delayed by at least six months amid weak market conditions.
US-based investment giant Vanguard has slashed the valuation of ride-hailing company Ola to $1.25 billion, according to its latest filing with the US Securities and Exchange Commission (SEC). This marks a sharp decline of over 80% from the company’s peak valuation of $7.3 billion in 2021.
In February 2024, Vanguard first revised Ola’s valuation to $1.88 billion, later increasing it slightly to around $2 billion in November. The latest markdown comes at a time when Ola continues to lose ground in India’s highly competitive ride-hailing sector. Once a dominant player, the Bhavish Aggarwal-led company now ranks third in daily ride volumes, falling behind Uber and market leader Rapido, which is backed by Swiggy and offers a mix of bike taxis, autos, and cabs.
Amid this backdrop, Ola’s IPO aspirations appear increasingly uncertain. Although Ola rebranded itself as Ola Consumer in August 2024 bringing together offerings such as financial services, cloud kitchens, and electric logistics and became a public entity in November, it has yet to take concrete steps towards an IPO. Market experts predict a delay of at least six months, citing adverse market conditions and weakening valuations.
Compounding the challenge is the declining performance of Ola’s electric vehicle division. Ratings agency ICRA recently downgraded the debt rating of Ola Electric Mobility Limited’s automotive arm from ‘A’ to ‘BBB+’ with a negative outlook. The downgrade was attributed to sluggish sales of Ola’s electric two-wheelers and a slower-than-expected path to profitability.
According to ICRA, the company is facing higher cash burn and will likely need to raise additional capital over the next 12 to 24 months as its reserves diminish. The electric division’s underperformance poses a significant obstacle for Ola’s overall financial health, further dampening investor sentiment as the company contemplates a future public listing.
With investor confidence waning and operational challenges mounting, Ola's road to recovery and IPO success appears increasingly steep. 

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