News India Live, Digital Desk: Big blow to us investment firm vanguard: According to the latest documents filed by the US Electoral Management Company Wangard, the US Securities and Exchange Commission (SEC), the evaluation of Ride-Heling Company Ola has reduced to $ 1.25 billion.
This is a significant decline of over 80 percent of Ola’s highest evaluation of $ 7.3 billion in 2021.
Earlier in February 2024, Wanguard first assessed the evaluation of Bhavish Aggarwal -led company at $ 1.88 billion, later in November last year, it was a little revised to about $ 2 billion.
The latest rebate is given at a time when Ola is losing its land in India’s competitive ride–halling market, while it is eyeing the public listing.
Currently, Ola has slipped to third place in terms of daily riding volume, and lags behind Rapido and Uber.
The Rapido bike supported by Swiggi has emerged as a new market leader providing taxi, auto and cab services.
The company became Unicorn after raising $ 200 million on the $ 1.1 billion evaluation last year.
In August 2024, Ola CEO Bhavish Aggarwal announced to rebrand Ola Cabs as Ola Consumer, which will bring various services such as financial products, cloud kitchen and electric logistics under one brand.
Although Ola converted to a public unit in November 2024 and has been exploring the possibilities of the IPO since then, no concrete steps have been taken yet.
Market analysts now hope that due to weak market conditions and falling evaluation, especially for its electric vehicle branch Ola Electric, the company will delay its IPO for at least six months.
Meanwhile, the rating agency ICRA has reduced the loan rating of the automotive unit of Ola Electric Mobility Limited due to the challenging path of less sales and profitability.
The agency reduced the rating of four loan equipment by Ola Electric Technologies Private Limited to ‘BBB+’ and maintained a negative outlook citing the company’s delay in sales of electric two -wheelers.
The ICRA argued that Ola Electric had to struggle to increase the sales of its electric two -wheelers, causing more cash consumption and the company’s profitability has lagged behind.
As a result, the company may need to raise additional funds in the next 12 to 24 months as its current cash reserves are continuously decreasing.
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