Ola’s Valuation Marked Down by Vanguard

Ola’s valuation has recently been drastically reduced to around $70.3 million by the US-based asset management firm Vanguard, as indicated in its latest disclosure. This valuation stems from Vanguard’s carrying value of approximately $728,000 for its stake in Ola. The firm had previously invested about $51.7 million in Ola back in 2015, when the company was valued at nearly $5 billion. The recent assessment reveals that Ola’s valuation has plummeted by almost 99% from the point of Vanguard’s initial investment.

Vanguard’s Previous Markdowns

The latest reduction signifies yet another significant drop in the valuation that the Bhavish Aggarwal-led company has received from one of its early institutional investors. Previously, Vanguard had reduced Ola’s valuation several times, placing it at $1.88 billion at the start of 2024 before further lowering it to $1.25 billion in May 2025.

Ola’s Peak Valuation

Ola was once considered one of the most valuable startups in India, achieving a valuation of $7.3 billion during the height of the funding cycle in 2021. Vanguard’s current marking suggests a valuation that is more than 99% below this peak.

Understanding Valuations

It is important to highlight that the valuations assigned by mutual funds and asset management companies to their private investments may not always reflect the true market value of a company. These valuations can be shaped by various internal methods, liquidity discounts, market conditions, and other assumptions.

Ola’s IPO Plans and Financial Performance

Ola has chosen not to comment on the situation. This markdown coincides with the company’s preparations for its anticipated IPO. During the financial year 2025, Ola experienced a 42% decline in operational revenue, with figures dropping to Rs 1,171 crore from Rs 2,012 crore in the preceding fiscal year. Additionally, the net loss increased to Rs 662 crore from Rs 329 crore. The firm continues to confront fierce competition from rivals such as Uber and Rapido in the ride-hailing sector. Notably, Rapido has recently positioned itself with a valuation of $3 billion following a substantial $240 million fundraising effort.