Hero MotoCorp to Invest Rs 550 Crore in Ather Energy to Support Expansion
- ByStartupStory | September 5, 2023
Hero MotoCorp is set to invest an additional Rs 550 crore in Ather Energy, an electric scooter manufacturer. The investment is contingent upon the execution of definitive documents and the completion of customary transaction conditions, as stated in a filing with the stock exchange. Hero MotoCorp’s board of directors has approved this investment in Ather Energy’s rights issue. This move aligns with Ather Energy’s effort to secure funding ahead of its initial public offering.
Hero MotoCorp has previously invested over Rs 1,000 crore in Ather Energy, holding a 33.1% stake in the company. The new investment will be made in Series E2 compulsory convertible preference shares.
Ather Energy reported sales of Rs 1,806 crore in FY22-23, a significant increase from approximately Rs 414 crore in FY21-22 and nearly Rs 80 crore in the previous fiscal year. Ather Energy, founded in 2013 by Tarun Mehta and Swapnil Jain, has more than 1,400 charging stations across 100 cities and manufactures three electric scooters: Ather 450X, Ather 450 Plus, and Ather 450S. The company experienced a 25.77% increase in sales, selling 8,062 units in August compared to 6,410 units in August 2022.
In July, Ather Energy entered into a partnership with Bharat Petroleum Corporation Limited to expand its charging network. The company previously secured $50 million in equity funding in October, with backing from Caladium Investment Pte Ltd and Herald Square Ventures, led by Navam Capital. During its last funding round in October, Ather was valued at $700 million and was seeking additional funding to achieve unicorn status.
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