Vanguard Cut Ola's Valuation to $1.25 Billion Amid Falling Market Share

US-based asset management giant Vanguard has significantly cut down the valuation of Indian mobility company Ola to $1.25 billion, as per a recent filing with the US Securities and Exchange Commission (SEC). This marks an over 80% plunge from Ola's peak valuation of $7.3 billion in 2021.

Vanguard Slashed Ola’s Valuation

Earlier in February 2024, Vanguard had already marked Ola down to $1.88 billion, below the $2 billion threshold for the first time, before slightly revising the figure upwards to approximately $2 billion in November. The latest adjustment, however, underscores a continuing erosion in investor confidence as the company struggles to maintain its footing in a competitive market.

Despite its ambitions, the ride-hailing firm has lost significant market share in recent quarters. Rapido, backed by Swiggy, has surged ahead as the new market leader, followed by Uber, with Ola now relegated to third place in terms of daily ride volumes across bike taxis, autos, and cabs.

In a bid to consolidate its various ventures, CEO Bhavish Aggarwal announced in August last year that Ola Cabs would be rebranded as Ola Consumer. The restructured entity now houses the company's financial services, electric logistics, and cloud kitchen operations. Although Ola formally became a public entity in November 2024 and has been exploring IPO opportunities since, it has yet to take definitive steps toward listing.

Meanwhile, rival Rapido achieved unicorn status after a $200 million funding round last year, reaching a valuation of $1.1 billion. In Q2 FY25, it surpassed Ola in terms of total daily rides, further intensifying the competitive pressure. Despite losing volume share, Ola continues to outpace both Uber and Rapido in revenue from its ride-hailing operations.

On May 12, 2025, Ola share price rose over 5%, reaching a day high of ₹49.65 at 02:05 PM after opening at ₹49.00 on BSE.

Conclusion

Ola faced a steep valuation cut, increased competitive pressure. While the company has made strides in improving its financial health and restructuring operations under a unified brand, it continues to lose ground in its core ride-hailing business.

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