One of the world’s largest asset management company Vanguard has marked up the valuation of two Indian startups-Flipkart and Ola stating 64% and 12%. Apart from having a hard time in raising funds, both ace Indian Startup managed to keep up their valuation.
The markup by Vanguard comes at a time when both Flipkart and Ola are reportedly in talks to raise more funds from SoftBank and Tencent, respectively. As per the latest filing with the US Securities and Exchange Commission (SEC), Vanguard World Fund has raised the value of its investments in Flipkart by marking up its shares to $107.7 for the three months ended May, from $68.73 per share during the previous quarter.
Flipkart’s worth was estimated lower than the Vanguard evaluation during USD 1.4 billion investment round by Tencent, Microsoft, and eBay in April. The round saw Flipkart’s shares pegged at USD 88 per share and the company was valued at USD 11.6 billion.
On the other hand, Ola’s shares are valued at USD 209.56, which is about 12 percent higher than last year’s USD 187.47.
According to Vanguard’s February filling, “Ola Cabs fell in value after raising additional capital from SoftBank. While Ola has a market-leading position in India, it faces competition from Uber; for long-term growth, the company needs the resources of an investor like SoftBank.”
This markup by Vanguard is a confirmation of increasing interests of investors in Flipkart and Ola as they defend their position in the market against global rivals such as Amazon and Uber. Read more about Indian Startup Ecosystem.