Vanguard has marked down its valuation of Ola to about $70 million, a 99% drop from the $7 billion valuation in 2021, according to inc42.com. This markdown reflects a steep decline in investor confidence as Ola faces widening losses and shrinking market share. The markdown is the latest in a series of cuts, with Vanguard valuing Ola at $1.88 billion in early 2024 and $1.25 billion in May 2025.
Vanguard first backed Ola in 2015 and now values its holding at approximately $728,000. Ola Consumer's financials show losses more than doubled year-on-year to ₹662 crore in FY25, while operating revenue fell to ₹1,171 crore. The company’s accumulated losses reached ₹21,000 crore by March 2025, alongside debt obligations exceeding ₹586 crore. Despite these challenges, Ola maintains it has sufficient liquidity to meet its obligations but faces pressure to conserve cash.
The markdown highlights Ola's struggle to retain its position in India's ride-hailing market. Once the dominant player, Ola has lost ground to competitors, with Uber remaining a major rival and Rapido overtaking Ola in market share. The valuation reset underscores the challenges Ola faces amid intensifying competition and operational setbacks, signaling a significant shift in the ride-hailing sector landscape.
Ola's next financial disclosures will be closely watched for signs of recovery or further decline, as the company navigates mounting losses and competitive pressures. Vanguard's markdown serves as a stark indicator of the startup's current valuation and investor sentiment.