New Delhi, May 11 (IANS) U.S. investment management firm Vanguard has slashed the valuation of ridesharing company Ola by 35% amid a global macro backdrop, slashing its value to around $4.8 billion.
According to a TechCrunch report, Vanguard cut the valuation of Ani Technologies, Ola’s holding company, by 35% and disclosed this in its report to investors.
“He reduced his ownership of Ola shares to $33.8 million from the purchase price of $51.7 million, according to an analysis of his documents,” the report noted.
Ola was valued at $7.3 billion at the end of 2021 and $5.7 billion in a private funding round in January 2019.
The company did not comment on the report.
Ola’s losses piled up to Rs 17,453 crore as revenue fell by 63% in FY21.
The company lost Rs 328 crore on its ride-sharing business and Rs 653.5 crore on the taxi hire segment in FY21, according to reports.
In January this year, the ride-hailing giant began laying off 200 employees across its Ola Cabs, Ola Electric and Ola Financial Services verticals as part of the “restructuring” exercise.
The company had told IANS that it was “centralizing operations and undertaking a restructuring exercise to minimize redundancies and build a strong side structure that reinforces relevant roles and functions.”
Previously, restructuring exercises had impacted employees across product, marketing, sales, sourcing, technology, business and corporate operations verticals, affecting nearly 500 employees who “resulted from the restructuring of the car and dashboard businesses”.
The ride-sharing major had closed its used vehicle business Ola Cars, as well as its fast-trading business, Ola, as the company focused on its electric two-wheelers and upright cars.