Vanguard Marks Down Ola’s Valuation To Just $70 Million

Ola Suffers Massive Valuation Collapse

Ride-hailing company Ola has suffered another major valuation setback after US-based asset manager Vanguard slashed the value of its investment in the company, implying a valuation of just $70.3 million.

According to Vanguard’s latest disclosure, the firm’s carrying value for its Ola stake now stands at approximately $728,000. Based on the size of its shareholding, this translates into an implied company valuation of roughly $70.3 million.

The markdown represents one of the steepest valuation declines ever recorded for a prominent Indian startup.

From $5 Billion To $70 Million

Vanguard first invested around $51.7 million in Ola in 2015 when the company was valued at nearly $5 billion.

The latest valuation implies that Ola has lost almost 99% of its value since that investment.

The decline is even more dramatic when compared to Ola’s peak valuation during the startup funding boom. In 2021, the company was valued at approximately $7.3 billion, making it one of India’s most valuable startups.

Vanguard’s latest estimate suggests a valuation that is more than 99% lower than the company’s peak.

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Multiple Valuation Cuts Over The Years

This is not the first time Vanguard has reduced the value of its Ola investment.

The asset manager had previously valued Ola at approximately $1.88 billion in early 2024 before reducing it further to $1.25 billion in May 2025.

The latest markdown to $70 million marks the sharpest cut yet and reflects growing concerns around the company’s business performance and competitive position.

However, experts note that valuations assigned by mutual funds and asset managers to private companies do not necessarily reflect actual market value.

Such estimates often incorporate liquidity discounts, internal valuation models, prevailing market conditions, and other assumptions that may differ from real-world transaction values.

Financial Performance Remains Under Pressure

The markdown comes at a challenging period for Ola as it works toward a potential public listing.

For FY25, the company reported a significant decline in operating performance.

Revenue fell 42% year-on-year to Rs 1,171 crore from Rs 2,012 crore in the previous fiscal year.

At the same time, net losses widened sharply to Rs 662 crore compared to Rs 329 crore a year earlier.

The deteriorating financial performance has added pressure on the company as investors increasingly focus on profitability and sustainable growth.

Competition Intensifies In Ride-Hailing Market

Ola continues to face intense competition in India’s ride-hailing sector.

Global rival Uber remains a strong player in urban mobility, while Rapido has emerged as an increasingly formidable competitor.

Rapido recently raised $240 million in fresh funding and reportedly achieved a valuation of around $3 billion, highlighting the contrasting trajectories of the two companies.

The growing competition has intensified pricing pressure and increased customer acquisition costs across the sector.

IPO Plans Continue Despite Challenges

Despite the valuation markdown and financial headwinds, Ola is still preparing for its proposed initial public offering.

The company has not commented on Vanguard’s latest valuation estimate.

Industry observers note that private market valuations assigned by fund managers are not necessarily indicators of IPO pricing or market capitalization at listing.

Nevertheless, the latest markdown underscores how dramatically investor sentiment toward late-stage technology startups has shifted since the peak funding years.

For Ola, the road ahead will likely depend on improving financial performance, strengthening market share, and demonstrating a sustainable path to profitability before approaching public markets.