Ola’s Identity on the Line? Aggarwal’s IP Shift Plan Raises Eyebrows

As part of the ongoing restructuring, Ola founder Bhavish Aggarwal wants to move ANI Technologies' intellectual property (IP) rights to the Ola name to a holding firm run by his family office.

As the larger markets and sectors change, Ola's spokesman informed a media outlet that the group's structure is being proactively reconfigured to generate greater value and operational agility. This change will be implemented carefully and announced at the appropriate moment.

 Investors in ANI are concerned about the decision because they fear they may lose out on future brand value. In exchange for royalties, ANI Technologies currently licenses the Ola brand to Ola Electric. ANI shareholders might not receive these future profits if the brand intellectual property is transferred out of the company.

ANI Investors Holds no Stake in Ola Electric and Krutrim

The matter is delicate because neither Aggarwal's artificial intelligence (AI) startup Krutrim nor his electric mobility business Ola Electric are owned by ANI's backers. The move's structure and whether board or investor approval would be necessary are still unknown.

If the transfer is successful, Aggarwal will have more freedom to use the brand in all of his endeavours while maintaining control from his family office. In order to promote and grow his AI business, Krutrim Aggarwal promised in December to use 1.1% of the company's equity share capital, or around INR  452 crore, to facilitate funding through debentures.

As it considers the launch of an initial public offering (IPO) of the ride-hailing company, ANI Technologies, the parent company of Ola Cabs, has started preliminary talks with investment banks.

Ola Already in Lot of Trouble

Ola Electric is under more pressure than ever after the Transport Ministry requested trade certificates from the Bengaluru-based EV manufacturer. According to a media outlet, the company received a show-cause notification .

The notice stated that Ola Electric must respond to the aforementioned questions within seven days of receiving this letter in order to prevent any negative consequences.

On 24 April, Ola received a new show-cause notice that requested information on the number of sales and service centres the business now operates. The notice further asked about the number of trade certificates it has obtained in the last three years and the date of issuance of each certificate.

 Additionally, Ola Electric must clarify if its facilities are used to store unregistered automobiles. In addition to the aforementioned, the EV manufacturer must disclose the model and variant-by-variant information for the 7,820 EV scooters it sold in February.

Ola Electric stores operating without a trade certificate have been asked to close by the Maharashtra transport department, according to a media source. In a show-cause email to RTOs, Maharashtra's joint transport commissioner stated that action should be taken to close the centre and rescind the original trade certificate.