US-based Asset Management Company (AMC) Vanguard cut fair value of ANI Technologies- parent company of ride-hailing platform Ola- for the third consecutive time. With this, Ola is valued at around $1.9 billion- 74 per cent lower than its valuation of $7.3 billion. It had raised $139 million from IIFL, Edelweiss PE and others in December 2021. This also marks the third time that Vanguard has cut Ola’s valuation.
Earlier in May last year, Vanguard said the company was valued at $4.8 billion and then again lowered its valuation to $3.5 billion in August 2023. The US-based Vanguard lowered Ola’s valuation in 2020 and 2021 as well.
Moneycontrol reported that Vanguard holds 166,185 shares of ANI Technologies- about 0.7 per- cent stake in the ride-hailing startup. These slashes in valuation come despite ANI Technologies narrowing its net loss in the fiscal year gone by when it reported a net loss of ₹772 crore in FY23 against a loss of ₹1,522 crore in FY22. Its consolidated revenue increased nearly 42 per cent year-on-year to ₹2,799 crore.
This is not a new thing though as investors have been readjusting startup valuations over the past few months. Recently, Invesco marked up Swiggy’s valuation to $8.3 billion, the second back-to-back increase and Fidelity cut Meesho’s valuation from $5 billion earlier to $4.1 billion. Pine Labs was valued at $3 billion as of October 31, 2023, down from its valuation of $4.7 billion on August 31, 2023.
These adjustments are based on AMC’s internal assessment of the macro and microenvironment and do not indicate a permanent markup or markdown in the startup’s overall valuation.
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