Vanguard reduces Ola’s value to $1.88 billion

According to regulatory filings with the US Securities and Exchange Commission (SEC), a fund managed by US investment firm Vanguard has reduced the fair value of ANI Technologies, the parent company of Ola, to $1.88 billion as of November 30. This represents a 29% decrease from its previous fair value of $2.65 billion as of August 31.

Vanguard’s latest fair value assessment of $1.88 billion is 74% less than the previous valuation when the company secured funding.

Vanguard’s previous reassessment of its stake in ANI Technologies reduced the company’s fair value by 24% from $3.5 billion, the value reported as of May 31 last year.

The company led by Bhavish Aggarwal last secured $139 million in funding in December 2021 from Edelweiss PE, valuing Ola at $7.3 billion.

Alongside Ola, various other Indian consumer internet companies have witnessed valuation adjustments by US investors lately. Funds managed by financial services giant Fidelity decreased the valuations of Meesho and Pine Labs last month.

In fiscal year 2023, ANI Technologies reduced its standalone loss by 65% to Rs 1,082 crore compared to Rs 3,082 crore in FY22, as per the company’s partial financial results on its website. The ride-hailing platform’s sales surged by 63% to Rs 1,987 crore from Rs 1,220 crore.

On January 25, Ola Cabs’ new CEO, Hemant Bakshi, stated that the company’s growth will be propelled by fleet-wide electrification and premiumization in the future. Bakshi also mentioned that the company achieved profitability based on earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY23.

Ola Electric, an associate company manufacturing and selling electric scooters, is preparing for its initial public offering (IPO) and has submitted its draft red herring prospectus. ANI Technologies owns a 4.35% stake in Ola Electric, which targets an IPO valuation between $7-8 billion.

In its draft prospectus filed on December 22, Ola Electric highlighted its heavy reliance on the services and reputation of Bhavish Aggarwal, the firm’s founder, chairman, and managing director. Aggarwal also serves as the chairman and managing director of ANI Technologies Pvt Ltd and has recently established a new startup, Krutrim SI Designs Pvt Ltd. Ola Electric noted that Aggarwal’s commitments to ANI Technologies and Krutrim SI Designs may limit the time he can devote to the company.

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