One of India’s unicorn, Ola has witnessed its valuation marked down by one of its investors even as the mobility sector witnesses a gradual recovery in the country, reported the Capital Quest. The investor slashed the valuation by nearly half.
This development comes at a time when Ola has revealed new growth plans, including setting up a Rs.2,400 crore electric vehicle facility expected to become the world’s largest two-wheeler factory.

With time, the ride-hailing company is constantly recovering after the pandemic hit. Its food business and financial services also witnesses a rise.

The Capital Quest report said that Ola, operated by ANI Technologies Pvt. Ltd. was one of the worst-hit technology startups in India as many companies switched to a work-from-home routine and physical distancing norms curbed demand for travel. The report also said that the US-based investment firm Vanguard Group, which had first backed Ola in 2015, cut the value of its investment by 45 percent between December 31, 2019 and June 30, 2020. It reduced the value of its investment by another 9.5 percent recently, bringing down the company’s valuation from a little over $6 billion to about $3 billion, said the report.
It is interesting to note that Vanguard has not revised its estimates of the value of its shares despite the lockdown being lifted months ago, said the report by The Capital Quest.

It said the company’s revenue plunged around 95 per cent after India imposed a lockdown in late March 2020, co-founder and CEO Bhavish Aggarwal had said at the time. This even forced the company to cut costs and lay off staff.