A significant restructuring might be on the horizon for the Ola group, with reports suggesting that founder Bhavish Aggarwal is considering transferring the intellectual property (IP) rights of the flagship ‘Ola’ brand to a new holding company under his family office. This potential move, as reported by The Economic Times, marks a crucial step in a broader realignment of Aggarwal’s various ventures, sparking both strategic interest and concerns among existing investors.
Currently, the intellectual property rights for the ‘Ola’ brand are held by ANI Technologies, the entity primarily known for operating Ola’s ride-hailing services, now rebranded as Ola Consumer. Ola Electric, the electric vehicle arm of the group, licenses the brand’s IP from ANI Technologies for a fee. The proposed shift aims to place the ownership of this valuable asset directly under a holding company controlled by Bhavish Aggarwal’s family office.
This potential transfer comes at a time when Aggarwal is seemingly looking to consolidate control and streamline the intricate cross-holdings within his expanding group of companies. These entities include ANI Technologies, the rapidly growing electric vehicle manufacturer Ola Electric, and Krutrim AI, the recently minted AI unicorn. While operationally linked, these three entities have distinct shareholder bases. Investors in ANI Technologies, such as Warburg Pincus, Vanguard, DST Global, and Steadview, do not have stakes in Ola Electric or Krutrim. Conversely, prominent investors like SoftBank, Temasek, Hyundai Motor, Tencent, and Alpha Wave have investments in both ANI and Ola Electric. Matrix Partners (now Z47) and Arun Sarin’s family office are among the few with stakes across all three.
The contemplation of this IP transfer has reportedly triggered unease among some shareholders of ANI Technologies. Their primary concern revolves around the potential loss of future royalty income that ANI currently earns from licensing the ‘Ola’ brand to Ola Electric. If the IP is moved out of ANI’s control, these investors could be excluded from the financial benefits associated with the increasingly valuable ‘Ola’ brand in the burgeoning electric vehicle market. This also raises questions about the strategic influence of ANI’s stakeholders in the broader Ola ecosystem moving forward.
This development follows the recent transfer of Ola Maps technology from ANI to Krutrim AI, with assets valued at approximately ₹40 crore. The movement of core assets between these entities has fueled discussions about transparency and the preservation of value for minority shareholders within the Ola group.
From Bhavish Aggarwal’s perspective, consolidating the ‘Ola’ brand IP under his family office could provide greater flexibility in leveraging the brand across his diverse ventures. It could simplify brand management and potentially facilitate easier fundraising and strategic partnerships for Ola Electric and Krutrim AI, without directly involving ANI’s existing investor base.
This restructuring effort occurs against a backdrop of evolving market dynamics and specific challenges for different parts of the Ola group. Ola Electric, despite its initial success, has faced recent headwinds, including a downgrade in its debt rating by ICRA due to slower-than-anticipated sales and persistent cash burn. Meanwhile, ANI Technologies, now focusing on its ride-hailing business under the Ola Consumer brand, is also venturing into new areas like food delivery via ONDC and cloud kitchens, while navigating increasing competition in the ride-hailing sector. ANI Technologies had also initiated preliminary talks for a potential IPO of its ride-hailing business, with a target listing by March 2026, although these plans might now face adjustments in light of the ongoing restructuring.
The outcome of this potential IP transfer and the broader restructuring efforts will significantly shape the future trajectory of the Ola group and its various entities, impacting its investors, market position, and overall strategic direction in the dynamic Indian technology landscape.
Key Highlights:
- Bhavish Aggarwal is considering transferring the ‘Ola’ brand IP rights from ANI Technologies to a new holding company under his family office as part of a broader restructuring.
- This move has raised concerns among ANI Technologies’ investors who fear losing out on future royalty income from Ola Electric.
- The restructuring aims to consolidate control and provide greater flexibility in leveraging the ‘Ola’ brand across Aggarwal’s ventures, including Ola Electric and Krutrim AI.
- The potential IP transfer occurs amidst evolving market challenges for Ola Electric and ANI Technologies’ diversification efforts.