US-based Vanguard slashes Ola's valuation to below $2 billion

Vanguard has reduced the valuation of Ola, led by Bhavish Aggarwal, to approximately $19 billion, marking a significant 74% decrease from its peak valuation of $7.3 billion.

This is the third consecutive markdown by Vanguard, reflecting a trend of investor recalibration within the tech startup ecosystem.

Ola has struggled to achieve profitability despite efforts to stabilize its financial standing.

The company's losses narrowed by 65% to Rs 1,083 crore in fiscal 2023, but its consolidated revenue saw a nearly 42% year-on-year increase to Rs 2,799 crore.

Ola's journey has been challenging, with a prolonged price war with Uber and the emergence of niche competitors like BluSmart.

Changing government regulations have also made profitability elusive for Ola.

In response, Ola has diversified by spinning off its e-scooter business, Ola Electric, into a separate entity and venturing into AI with Bhavish Aggarwal's new startup, Krutrim.