Startup Valuation Reality Check: SoftBank Trims Ola Electric, Baillie Gifford Marks Down VerSe
SoftBank trimmed its Ola Electric stake and Baillie Gifford marked VerSe down up to 80%. What startup valuation resets mean for investors.
Startup valuation resets are back in the Indian news. On 27 October 2026, StartupTalky reported that SoftBank's fund has reduced its stake in Ola Electric and that two Baillie Gifford funds have marked down their holding in VerSe, the parent of Dailyhunt and Josh, by up to 80%. Neither story is a verdict on the company, but together they show how far private and early-public valuations can drift from their peak. The figures below come from that roundup, and we could not open the original filings or company statements.
SoftBank and Ola Electric
According to the report, SoftBank's vehicle SVF II Ostrich sold 5.55 crore Ola Electric shares between 6 January and 22 October 2026. That cut its stake from 12.9% to 11.7%. It also sold 1.12 crore rights entitlements, about 25.9% of the 4.33 crore it received.
A rights issue lets existing shareholders buy new shares at a set price. A rights entitlement is the right to do so, and it can be sold if a holder does not want to take part. Ola Electric's rights issue of Rs 999.74 crore closes on 30 October.
The report adds context on the business: Q1 FY27 operating revenue fell 45% to Rs 455 crore, while net loss narrowed 21.5% to Rs 336 crore. Its e-scooter market share fell to 6.5% in September from 7.6% in August, and Goldman Sachs downgraded the stock to Sell. SoftBank first invested $250M in July 2019. The report does not say why SoftBank sold, so no motive should be assumed.
VerSe and the markdown
The report says two Baillie Gifford funds have cut VerSe's value by about 80% over different periods. One of them, the Schiehallion Fund, valued its stake at $7.47M as of August 2026, which is 78.2% lower than in January 2025. VerSe's operating revenue for FY25 rose 88% to Rs 1,930 crore, while EBITDA burn narrowed 20% to Rs 738 crore. VerSe disputes the lower valuations and points to its $5 billion round of April 2022.
A markdown is when an investor reduces the recorded value of its holding, usually at quarter-end. Think of a house you bought at a peak: until you sell, its price is an estimate, and the estimate can fall when comparable homes sell lower.
Why it matters
- Peak-era valuations are being retested. Rounds priced in 2021 and 2022 assumed fast growth and cheap capital.
- Revenue growth does not settle the question. VerSe's revenue rose strongly, yet the holder still cut the value, which suggests investors are weighing losses and exit routes too.
- Public markets add pressure. Ola Electric trades daily, so falling sales and analyst downgrades show up quickly.
What founders and employees should do
If you hold employee stock options, ask how your company's last round was priced and what a lower round would mean for your strike price. If you raise money, expect investors to ask about profit paths and not only growth. If you invest through funds, read the valuation notes in quarterly reports, as they often reveal changes before headlines do.
A caution: these are two cases, not a market trend. One investor selling or marking down does not prove a company will fail, and the companies' own responses may differ from the summaries reported here.
Key takeaways
- SoftBank's fund cut its Ola Electric stake from 12.9% to 11.7% during a Rs 999.74 crore rights issue, but no reason was reported.
- Baillie Gifford funds marked VerSe down by up to 80%, which VerSe disputes.
- Valuation resets show that growth alone no longer justifies peak-era prices.
Sources
- [StartupTalky: Daily Indian Funding Roundup, 27 October 2026](https://startuptalky.com/news/daily-indian-funding-roundup-key-news-27-october-2026/)
Tags: startup valuation Ola Electric VerSe SoftBank venture capital India