A potential transfer of the Ola brand's intellectual property (IP) to a new holding company controlled by Bhavish Aggarwal's family office is reportedly underway, sparking concerns among investors and raising questions about the group's restructuring strategy. The move would see the brand IP, currently held by ANI Technologies, shift to a new entity under Aggarwal's family office.

Background and Rationale

ANI Technologies operates Ola's ride-hailing business and possesses the brand IP, which it licenses to Ola Electric, the electric vehicle arm, for a fee. Ola Electric confirmed it holds a license to use certain IPs, including the logo and word-mark of 'Ola'. This license is perpetual, royalty-free, non-exclusive, non-transferable, non-assignable, and revocable. The restructuring occurs as Ola is venturing into new, capital-intensive businesses. Krutrim, Ola's AI venture, requires substantial funding for expansion into areas like large language models and AI chip development. Aggarwal has pledged a portion of his stake in Ola Electric, valued at over ₹500 crore, to fund Krutrim's growth and will route future investments through the BA Family Office. The family office will also manage funds raised by Aggarwal from personal stake sales across these firms.

Investor Concerns

The proposed transfer has reportedly triggered unease among some ANI shareholders, who fear a potential loss of future royalty income and a weakening of strategic control. With the IP potentially moving out of ANI Technologies, investors are concerned about the potential erosion of value, especially as they lack equity in Ola Electric and Krutrim. Some also worry about the complex cross-holding of assets within the Ola ecosystem.

Ola's Response

Ola has acknowledged the group restructuring, stating that it aims to "unlock greater value and operational agility" as markets evolve. An Ola spokesperson said the realignment would be undertaken thoughtfully and communicated at the right time and that the group comprises multiple high-growth businesses that are strategically synergistic.

Broader Restructuring and Asset Transfers

This potential IP transfer is not an isolated event. Recently, Ola Maps was transferred from ANI Technologies to Krutrim AI, with its assets valued at ₹40 crore. These movements of core assets across entities have raised questions about transparency and value preservation for minority shareholders.

Ownership Structure

Aggarwal's ownership varies across the Ola group companies. He holds approximately 8-9% of ANI Technologies, over 30% of Ola Electric, and nearly 90% of Krutrim AI. This disparity in ownership stakes adds to the concerns surrounding the asset transfers and the potential impact on different shareholder groups.

Financial Context

The restructuring occurs as capital needs are growing across Ola's verticals. Earlier this month, a ratings agency downgraded debt instruments of Ola Electric Technologies, citing persistent cash burn and slower-than-expected sales of its two-wheelers and warned that the company might require additional funding in the next 12–24 months. These financial pressures likely contribute to the ongoing restructuring efforts.

Other Developments

Amidst these strategic shifts, Ola Electric has refuted reports of a SEBI investigation into alleged insider trading. The company has also denied claims regarding Aggarwal's purported $300 million investment in Krutrim.

The potential transfer of the Ola brand IP to Bhavish Aggarwal's family office is a significant development in the ongoing restructuring of the Ola group. While the company claims the realignment will unlock value and improve agility, investors are wary of the potential impact on their holdings and the long-term implications for ANI Technologies. The situation remains dynamic, and further details are awaited as the restructuring progresses.