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Ola's Valuation Struck Down By 40% To Less Than $3 Billion

A fund-raising letdown?
Abhishek Chinnappa / Reuters

Online cab aggregator Ola's valuation has been struck a blow, with a 40 per cent markdown by a mutual fund of US-based Vanguard Group, Mint reported citing US regulatory filings.

The latest markdown brings Ola's valuation to about $3 billion, significantly down from the $5 billion it commanded in 2015 when it raised $500 million, noted the report.

Vanugard owns about 166,185 shares in Ola with a combined value of about $30.37 million. Vanguard previously marked down e-retailer Flipkart's valuation to $7.3 billion, following a write-down by Morgan Stanley, which had valued the e-retailer at less than $5.54 billion.

Ola was in fund-raising mode late last year with plans to raise about $600 million, Economic Times reported in November.

Ola has been in fierce competition with US-based Uber, which sees India as one of its key markets for growth. The app-based cab hailing market in India has been dominated by deep ride discounts, and aggressive expansion tactics, such as rolling out in-cab entertainment services to lure customers.

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This article exists as part of the online archive for HuffPost India, which closed in 2020. Some features are no longer enabled. If you have questions or concerns about this article, please contact indiasupport@huffpost.com.