A fund operated by US investment major Vanguard has marked down the fair value of ride-hailing platform Ola’s parent ANI Technologies to $1.88 billion as of November 30. This is 29% lower than the previous Ola valuation of $2.65 billion as of August 31, as per regulatory filings with the US Securities and Exchange Commission (SEC). Funds managed by Fidelity reduced the valuation of Meesho and Pine Labs. Invesco increased Swiggy’s valuation by 9% to $8.5 billion.
Vanguard Slashes Ola Valuation by 29% to Below $2 Billion
A fund operated by US investment major Vanguard has marked down the fair value of ride-hailing platform Ola’s parent ANI Technologies to $1.88 billion as of November 30. This is 29% lower than its previous fair value of $2.65 billion as of August 31, as per regulatory filings with the US Securities and Exchange Commission (SEC). The latest fair value of $1.88 billion ascribed by Vanguard is 74% lower than the last valuation at which the company raised money.
In the previous Ola valuation revision of its shareholding in ANI Technologies, Vanguard had slashed the company’s fair value by 24% from $3.5 billion as of May 31 last year.
The Bhavish Aggarwal-led company had last raised $139 million back in December 2021 in a funding round led by Edelweiss PE that valued Ola at $7.3 billion. In addition to Ola, several other Indian consumer internet companies have seen their valuations being revised by US investors in recent weeks. Funds managed by financial services giant Fidelity reduced the valuation of Meesho and Pine Labs last month.
Ola and Swiggy Updates in January
ET reported on January 4 that Invesco increased food and grocery delivery platform Swiggy’s valuation by 9% to $8.5 billion. Crossover funds, which invest in both publicly traded and privately held companies, periodically review the valuation of their portfolio companies. Ola did not respond to emailed queries.
On January 10, ET reported that ANI Technologies narrowed its standalone loss by 65% to Rs 1,082 crore in fiscal 2023. The firm had incurred a standalone net loss of Rs 3,082 crore in FY22, according to the company’s partial financial results shared on its website. The ride-hailing platform’s sales jumped 63% to Rs 1,987 crore from Rs 1,220 crore.
On January 25, Ola Cabs’ new chief executive officer Hemant Bakshi stated that fleet-wide electrification and premiumisation would drive growth for the ride-hailing company going ahead. Bakshi mentioned that the company had turned profitable based on earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY23.
Ola Electric’s IPO Plans and Bhavish Aggarwal’s Role
The company’s associate firm Ola Electric, responsible for manufacturing and selling electric scooters, is gearing up for an initial public offering (IPO) and has submitted its draft red herring prospectus. ANI Technologies holds a 4.35% stake in Ola Electric, which targets an IPO valuation of $7-8 billion.
In its draft prospectus filed on December 22, Ola Electric emphasized its reliance on the services and reputation of Bhavish Aggarwal, the firm’s founder, chairman, and managing director. The document highlighted Aggarwal’s role as the chairman and managing director of ANI Technologies Pvt Ltd, as well as his recent venture, Krutrim SI Designs Pvt Ltd. Ola Electric expressed concerns that Aggarwal’s involvement with ANI Technologies and Krutrim SI Designs might divert his attention from the company.
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