03/02/2017 12:12 PM IST | Updated 03/02/2017 12:39 PM IST

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.