Ola market value got melted down to 40% as the US-based investment firm Vanguard has slashed their stake towards the country’s largest cab-hailing services. It’s the another unicorn startup who has joined the ranks of Flipkart, Snapdeal, Zomato etc
According to US Security and Exchange Commission, Vanguard World Fund has marked down the value of its holding in Ola’s parent firm ANI Technologies Pvt. Ltd by over 40%. The valuation of Ola was on its peaks at $5 Billion when it last raised $500 million in November 2015 and now it got slashed down to $3 Billion.
In previous Quarter, Vanguard valued the Ola share to $311.27 per share and then in November Quarter, the values got reduced to $182.7 per share. Vanguard now holds about 166,185 shares in Ola valued at about $30.37 Million.
A recent markdown by Fidelity Investments valued Flipkart at around $5.58 billion, much below the $15 billion valuations at which the e-commerce firm last raised funds. This marked at least the sixth instance of an investor in Flipkart marking down the value of its holding in the company over the past 12-18 months.
Gurgaon-based Snapdeal has also significantly lost market share in last 12-18 months.
Since then, while India’s Internet market has expanded, the number of actual profit making transactions have barely grown. Large investors have pushed their portfolio companies to strengthen their business models and focus on building sustainable business with strong unit economics.
This markdown can be considered as market consolidation and further money raising will be little difficult for Indian startups. Read more news.