Unicorn · Mobility & Logistics

Vanguard slashes Ola investment value amid deep losses

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Vanguard marked down its stake to $70 Mn from a $1.25 Bn estimate

Revenue collapsed 42% and cash reserves halved as competitors gained ground

Ola faces credit downgrades and a $65 Mn loan due in December 2026

Vanguard marked down the value of its Ola Cabs investment to $70 Mn on June 3, 2026.
This represents a massive >90% haircut from the company's peak valuation of $7.3 Bn in late 2021.
The write-down is significantly lower than Vanguard's prior estimate of approximately $1.25 Bn last year.
Operating revenue for fiscal year 2025 collapsed by 42% to ₹1,171 Cr from ₹2,012 Cr the previous year.
Net losses nearly doubled to ₹662 Cr in FY25 while cash reserves were halved to ₹653 Cr.
Credit rating agencies Moody's and S&P Global Ratings downgraded the company's credit rating due to financial stress.
A credit warning states that cash falls short of debt service and capital expenditure requirements through December 2026.
The company must maintain at least $26 Mn in cash reserves to avoid default on a $65 Mn term B loan due in December 2026.

Founder Bhavish Aggarwal shifted focus to Ola Electric, leaving the cab business under-resourced.
Competitors like Uber and Rapido have strengthened their positions while Ola stagnated.
High driver commissions and poor product innovation have alienated both drivers and consumers.

Ola Cabs operates as a ride-hailing platform primarily in the Indian market.
It historically held a duopoly with Uber, controlling approximately 90% of the market share.
The company relies on a contentious 30% commission model from drivers which has caused friction.
Drivers face high EMI payments and vehicle abandonment issues linked to the business model.
Consumers cite subpar survival quality and a lack of new product innovations.
Parent company ANI Technologies pivoted resources like marketing and engineering to Ola Electric in late 2018.
Key leadership roles including CEO, CFO, and Chief Business Officer have recently departed.
Founder Bhavish Aggarwal stepped in to run the business directly after the CEO exit in April 2024.
The company faces a critical liquidity crunch with cash reserves insufficient for upcoming debt obligations.

The company must raise or preserve cash to meet the $26 Mn reserve requirement for its term B loan.
Acquisition talks have been reported but Ola denies discussing any sales.

Vanguard (existing) — Early investor and asset manager who marked down its investment value.
SoftBank (existing) — Backer of the company.
Tiger Global (existing) — Backer of the company.
Temasek (existing) — Backer of the company.