As the realm of ride-sharing transportation heats up with more options and modes, the pioneers of the field, got the ball rolling with the cab-aggregator business, is feeling the pinch.
This time, the strike has come from the Pennsylvania-based US investor advisor company, Vanguard Group.
The asset management company has cut the fair value of ANI Technologies, the parent company of ride-hailing platform Ola, for the third consecutive time, latest regulatory filings showed.
The Fading Charm of the Unicorn
Ola is struggling in India because private driver companies are taking away its major market. The company has ventured into other avenues, like it's purported electric scooter business, but the Bengaluru-based company's plans to go public with an IPO in 2021 was shelved, leaving the entity in a bit of tricky spot.
Vanguard positioned Ola's valuation below USD 2 billion, at around $1.9 billion which is 74 percent lower than its valuation of USD 7.3 billion, when during its heydays, it commanded when it raised USD 139 million from IIFL, Edelweiss PE and others in December 2021, Vanguard itself holds 166,185 shares of ANI Technologies.
The company is yet to post profit, as it's losses stood at 65 per cent, with a deficit of Rs 1083 crore. Its troubles have only burgeoned, as in 2023 it had to shut down its EV showroom. On the other hand, the company has tried to narrow its losses over the years, with as it's consolidated revenue increased nearly 42 percent year-on-year to Rs 2,799 crore.
Road Ahead
All this while, its fellow Indian startups saw an increase in their valuation, case in point, Swiggy, whose valuation stood at USD 8.3 billion.
Ola electric, the company's e-scooter business, is looking to raise USD 662 million, in an initial public offering. Meanwhile, Krutrim, another AI start up led by the founder of Ola, Bhavish Aggarwal, has secured a USD 50 million funding, taking its valuation to USD 1 billion
