US Investment Firm Vanguard Lowers Ola’s Valuation to $1.25 Billion Amid IPO Uncertainty

US-based investment firm Vanguard has reduced the value of Indian ride-hailing company Ola to $1.25 billion. This new valuation marks a significant drop from earlier estimates, and it comes at a time when Ola’s plans for an initial public offering (IPO) remain uncertain.

Vanguard, which holds a small stake in Ola, reviewed its investment and lowered the company’s estimated worth based on current business conditions and market trends. The move has raised questions about the strength of Ola’s financial health and the company’s future growth, especially as it prepares for a possible IPO.

Ola, once seen as a leading startup in India’s tech and transport space, has faced several challenges in recent years. These include growing competition, fewer rides after the pandemic, and difficulties in expanding its electric vehicle business. Analysts believe these problems may have influenced Vanguard’s decision to cut the valuation.

This is not the first time Ola’s valuation has gone down. In previous reports, other investors also trimmed their estimates, suggesting that the company may be struggling to maintain its earlier momentum.

The IPO, which Ola has delayed several times, was expected to help raise fresh funds and attract new investors. However, with the latest cut in value, there is more doubt about how soon the company can go public and how much money it will be able to raise.

Ola has not yet responded to the updated valuation, but it continues to operate in major Indian cities and also runs its electric scooter division, Ola Electric. Industry experts say the company needs to show strong performance and stable revenue growth to regain investor trust.

For now, the lower valuation by Vanguard puts more pressure on Ola’s leadership to improve the business and make the company attractive to future investors.