Vanguard, a trailblazer in U.S. index funds, has significantly reduced the value of its investment in the Indian ride-hailing startup Ola by almost two-thirds since the initial investment. Similarly, Neuberger Berman has cut the value of its PharmEasy shares by over 90%, according to an analysis of the funds’ filings.
In its annual report, Vanguard revealed a 63.7% reduction in the value of its shares in Ani Technologies, Ola’s holding firm, as of the August closure. The asset manager marked down its Ola shares to $18.75 million, down from the initial purchase price of $51.7 million. This adjustment suggests a decrease in Ola’s valuation to approximately $2.65 billion from $7.3 billion at the end of 2021.
Ola, with a history spanning over a decade and more than $3.9 billion in funding, had a valuation of $3.5 billion in early 2017.
On the other hand, Neuberger Berman disclosed a valuation of $823,432 for its PharmEasy shares, purchased for $8.8 million in October 2021, as of the end of August. This adjustment implies a valuation of about $550 million for PharmEasy, which was valued at $5.6 billion in the second half of 2021 and has raised over $1.5 billion in equity and debt.
Neuberger Berman cited India’s API Holdings, the parent company of PharmEasy, as a detractor in its annual report. API Holdings faced a decline in value due to news of a potential offering of more equity at a lower price. API Holdings recently raised $420 million through a rights issue, causing its valuation to drop below $600 million amid debt repayment deadlines to Goldman Sachs.
Ola declined to comment on the developments.
