Cab aggregator Ola, which is run by ANI Technologies has seen a slight mark-up in its valuation from US-based Vanguard Group. According to the latest filing with US Securities and Exchange Commission, Vanguard World Fund raised the value of its investments in ANI Technologies to $187.5 per share as on February 28, 2017 from $182.7 per share as on November 30, 2016. Vanguard holds 1.66 lakh shares in the company and has marked up its valuation in Ola by 2.5%.
“ANI Technologies, the Indian online taxi-hailing business known as Ola Cabs, fell in value after raising additional capital from SoftBank. While Ola has a market-leading position in India, it faces competition from Uber; for long-term growth, the company needs the resources of an investor like SoftBank,” Vanguard said in its filing. Ola had raised funding in the range of $300-350 million led by Japanese investor SoftBank at a downround of $3.5 billion in February. This was significantly lower from its valuation in November 2015, where the company had raised $500 million at a valuation of $5 billion.
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Prior to this, in November 2016, Vanguard had marked down the value of ANI Technologies by almost 40% to $182.7 per share from $311.27 per share in the previous quarter. In FY16, Ola doubled its losses to Rs 1,760 crore from Rs 754 crore in the previous year, according to filing by ANI Technologies with the registrar of companies. Meanwhile, the revenues of the company also jumped almost seven-fold to Rs 664 crore for the year ending March 31, 2016. The SoftBank-backed company has locked horns with US-based Uber in the taxi-hailing segment and is splurging money on marketing and promotions to grab a larger market share against Uber.
Vanguard World Fund, also holds 4.7 lakh shares in Flipkart and has maintained its valuation at constant $68.73 a piece for quarter ending February 2017 and November 2016, according to the filing. However, Valic and Fidelity have slashed the valuation of Flipkart marginally for the period ended February 2017.