Bengaluru-based electric two-wheelers maker Ather Energy, has raised an investment of $35 Mn in its latest round of Series D funding, led by Flipkart cofounder Sachin Bansal’s who pitched in $23 Mn.
With this round, Bansal has made a total investment of $53 Mn in Ather Energy. Hero MotoCorp has also invested $12 Mn in the electric two-wheelers maker this round.
The company plans to use the capital to accelerate its expansion plans and speed up the deliveries of the scooter Ather 450X which it launched in January 2020.
Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather Energy designs and sells electric two-wheeler vehicles for the Indian market. It is also one of the earliest startup investments of Sachin Bansal when he invested $0.5 Mn in the EV maker as its angel investor in 2014. It operates Ather Grid, a EV charging network in Bengaluru and Chennai with plans to bring this to Ahmedabad, Coimbatore, Hyderabad, Kochi, Kolkata, Mumbai, NCR and Pune.
“Electric vehicles are here to stay and Ather Energy is playing a leading role in driving this change. Sachin has been part of our growth journey and this investment is a strong endorsement of the momentum we’ve built over these years. Post the successful launch of our new product line, we are now looking forward to delivering the vehicles and seeing them across all cities. The pandemic has changed the landscape of personal transport and we hope that with high-performance alternatives available people will choose electric vehicles for their daily commute,” said Tarun Mehta, cofounder & CEO, Ather Energy.
The Hero MotoCorp-backed startup had reported INR 48.8 Cr revenue in FY20, representing over 4x growth from INR 11.7 Cr in the previous fiscal year.
It has raised nearly $102.2 Mn across multiple rounds from marquee investors like Tiger Global Management, Hero MotoCorp and Flipkart founder Sachin Bansal.
In July, the company had raised INR 84 Cr ($11.2 Mn) from Hero MotoCorp which increased the auto giant’s stake in Ather to 34.58%.
Flipkart cofounder Sachin Bansal said, “Ather Energy has set a new benchmark for intelligent electric bikes in the Indian automobile industry. Their new product line and expansion plans across the country will make EVs a part of the Indian landscape. Having been a part of the team since 2014, it’s great to see their vision taking shape.”
Ather Energy’s Growth Story
While the auto industry has seen plenty of losses and layoffs in the past year and half, the electric vehicle (EV) market is on the rise in India, and recorded a 20% uptake in sales in FY20. Ather Energy which has reported INR 48.8 Cr revenue in FY20, representing over 4x growth from INR 11.7 Cr in the previous fiscal year.
The startup recorded over 8x growth in its operating revenue from INR 4.2 Cr in 2019 to INR 35.3 Cr in the year ended March 30, 2020. Out of this, a majority (INR 35 Cr) came from the sale of products — electric two-wheelers — while the rest INR 0.3 Cr was from the sale of services.