Ola Valuation Plunges 83% to $1.25 Billion: Vanguard

US-based asset management firm Vanguard has sharply reduced the valuation of Indian ride-hailing company Ola to $1.25 billion (approx. ₹10,437 crore), according to a recent filing with the US Securities and Exchange Commission (SEC). The revision marks a significant drop—over 80%—from Ola’s peak valuation of $7.3 billion in 2021.

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Vanguard first devalued Ola to below the $2 billion threshold in early 2024, assigning it a worth of $1.88 billion. While a brief revaluation in November 2024 brought the estimate back to around $2 billion, the latest markdown signals continued investor caution amid operational and competitive headwinds. 

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Ola, led by founder and CEO Bhavish Aggarwal, has been facing stiff competition in its core ride-hailing business. Once a dominant player in India’s urban mobility landscape, the company has now fallen to third place in terms of market share. Rapido, backed by Swiggy and now a unicorn after raising $200 million last year, has taken the lead. The company has aggressively scaled its operations from bike taxis to autos and cabs, overtaking both Ola and Uber in terms of daily rides. Uber currently holds the second position.

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In August 2024, Aggarwal announced a strategic rebranding of Ola Cabs to Ola Consumer. The revised identity aims to consolidate the company’s broader business portfolio—including financial services, cloud kitchens, and electric logistics—under a single corporate structure. While Ola transitioned to a public entity in November 2024 and has explored IPO possibilities, there has been no official progress toward a stock market listing.

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Financially, Ola reported mixed performance in FY24. The company’s operating revenue declined by 5.5%, falling to ₹2,012 crore from ₹2,128 crore in FY23. However, it managed to drastically reduce its net loss to ₹10 crore, compared to ₹623 crore the previous year. The firm also became EBITDA-profitable in FY24. Over the past year, Ola exited its international markets—including the UK, Australia, and New Zealand—to focus on domestic operations.

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Despite shrinking market share, Ola continues to generate higher revenue from its ride-hailing segment compared to its rivals. In FY24, Ola’s ride-hailing revenue stood at ₹1,761 crore—more than double Uber’s ₹807 crore from mobility services and significantly higher than Rapido’s ₹648 crore. Rapido, however, managed to cut its losses by 45 per cent to ₹371 crore in the same period.