Ola CompanyImage Credit source: File Photo
At present, the valuation of Ola has come down significantly in the country. Because the world’s largest passive investing fund operator Vanguard Group has reduced the valuation of Ola by 35 percent. Due to this Ola is facing financial crisis. For some time, there has been a steady decline in the valuation of Ola. Due to this decline, lack of funding is being told. Because there has been the lowest funding in the last 9 years.
Now it is becoming difficult for Ola to survive in the market. Ola is not finding any way to avoid the increasing losses. In such a situation, the question is being raised whether Ola service will be closed in the coming time. Here are 5 reasons for this.
lack of funding
Due to lack of funding, there has been a huge decline of about 35 per cent in the valuation of ANI Technologies. ANI Technologies is the parent company of online cab booking platform Ola. Ola’s valuation has come down from $7.4 billion to $4.8 billion. The decline in valuation has come at a time when Indian startup companies are grappling with lack of funding.
Lowest funding in 9 years
In April 2023, Ola has received the lowest funding in the last 9 years. Due to which a financial crisis has arisen in front of Ola and Ola needs a lot of funding to remain in the market. Ola is making various efforts to increase its funding. So that he does not have to stop the Ola service.
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Company’s valuation fell by 35%
At present, the valuation of Ola has come down by 35% to $4.8 billion. Earlier in the year 2020, the valuation of Ola fell by 45%. And in the year 2021, the valuation of Ola fell by 9.5 percent.
Ola Used Car Service is already closed
Ola has already stopped the used car service due to the rise in the prices of diesel and petrol. Let us tell you that Ola had stopped the used car service at a time when the craze for used car service in the country was moving towards a new high level. Ola had discontinued the used car service within a year of its launch.
No way to avoid rising losses
Ola is continuously incurring losses due to lack of funding and fall in valuation and this loss is not taking its name. The losses are increasing continuously. Ola is making many efforts to recover this loss, but Ola is not able to find any way to avoid the increasing losses. Due to this, Ola is afraid that it may have to stop the Ola service.
Let us tell you that there has been a decline in the valuation of Ola at such a time. When the company is planning on bringing an IPO with listing on the stock market early next year. The company is all set to list its ride-sharing business in the stock market next year. Its purpose is to take forward its business by raising money through IPO.
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