Ola Electric's Bhavish Aggarwal Pledges Stake to Fund AI Startup Krutrim

Ola Electric Founder Pledges Shares for AI Venture

Bhavish Aggarwal, the founder and CEO of Ola Electric, has made a strategic move to support his artificial intelligence startup, Krutrim AI, by pledging a portion of his stake in the electric vehicle company. According to recent filings, Aggarwal has pledged 1.1% of his equity in Ola Electric, amounting to 4.83 crore shares, to raise debt for Krutrim 1

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The Pledge and Its Implications

The pledged shares, valued at approximately Rs 451 crore ($53.3 million) based on Ola Electric's recent stock price, represent 3.65% of Aggarwal's total holdings in the company 1

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. This move comes as part of a non-disposal undertaking executed between Aggarwal, Axis Trustee Services, and Krutrim Data Centre on November 23, 2023 1

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It's worth noting that the promoter shares of Ola Electric are currently under a lock-in period as per SEBI regulations. The company has stated that once this lock-in expires, Aggarwal will create a pledge over a portion of his shares and make the necessary disclosures 2

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Krutrim AI: India's First AI Unicorn

Krutrim AI, founded by Aggarwal, achieved unicorn status in January 2023 after raising $50 million from investors including Matrix Partners India (now Z47) 1

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. The startup is making significant strides in the AI sector:

1. Development of AI chips: Krutrim is working on multiple chip projects, including Bodhi 1 and Bodhi 2, set for launch in 2026 and 2028 respectively 2

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2. Partnerships: The company has collaborated with global semiconductor firm Arm and Untether AI for CPU and AI chip development 2

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3. Data center expansion: Plans are underway to scale data center capacity to 1 GW by 2028 to support AI and cloud initiatives 2

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Ola Electric's Market Position and Challenges

While Aggarwal focuses on his AI venture, Ola Electric faces its own set of challenges in the electric two-wheeler market:

1. Market share decline: The company's market share dropped by 6 percentage points to 24.8% in November 2023 2

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2. Decreased registrations: New vehicle registrations fell by 30% from October to November 2023 2

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3. Customer service issues: The company has faced rising customer complaints, impacting its stock price and market capitalization 2

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Despite these challenges, Ola Electric continues to expand its product range, recently launching two new electric scooter models targeting gig economy workers and cost-conscious consumers 2

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The Intersection of EV and AI Technologies

Aggarwal's decision to leverage his position in Ola Electric to fund Krutrim AI highlights the growing convergence of electric vehicle technology and artificial intelligence. This move suggests a strategic vision that sees potential synergies between these two rapidly evolving sectors, potentially paving the way for innovative applications of AI in the electric mobility space.