Ather Energy Raises INR 60 Cr Debt From InnoVen Capital

Bengaluru-based two wheeler electric vehicle maker Ather Energy is set to raise INR 60 Cr (around $7.1 Mn) via non-convertible debentures (NCDs) from InnoVen Capital. 

As a part of this dept funding, Ather will issue 6,000 Series D1 Debentures with face value of INR 1,00,000 (One Lakh) per debenture to InnoVen Capital.

“Pursuant to the order is hereby accorded for allotment of 6,000 Series D1 unlisted, secured, redeemable, non-convertible debentures (“Series D1 Debentures”) having face value of INR 1,00,000 (Rupees One Lakh only) per Series D1 Debenture, by way of private placement through issue of serially numbered private placement offer cum application letter…,” Ather said in its filing with the Registrar of Companies (RoC).

This debt funding marks the third infusion in Ather in less than two months, following an infusion pegged at INR 286.5 Cr in a mix of equity and debt last month. 

Alongside this, Ather’s board also approved raising INR 200 Cr of debt funding from Stride Ventures by issuing up to 20,000 non-convertible debentures.

Last year Hero MotoCorp committed to acquire an additional 3% stake in Ather at up to INR 140 Cr. Not to mention, Ather secured INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue in September last year. 

It is pertinent to note that Hero MotoCorp owns 40.89% stake in Ather Energy on a fully diluted basis. 

Meanwhile, reports suggesting that existing investor Sachin Bansal had sold a significant portion of his shares in Ather Energy to Zerodha cofounder Nikhil Kamath also emerged earlier this year.

Ather Energy’s net loss widened 22.5% in the fiscal year ended March 31, 2024 (FY24), as per the annual report of Hero MotoCorp.

The EV manufacturer’s net loss jumped to INR 1,059.7 Cr in FY24 from INR 864.5 Cr in FY23, as per the report. Hero MotoCorp owns 40.89% stake in Ather Energy on a fully-diluted basis.

This comes at the heart of Ather eyeing a public listing in the second half of 2024 at a valuation of around $2 Bn. In the run up to its initial public offering (IPO) launch, the startup converted into a public entity last month.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is a major player in the Indian two-wheeler EV market and currently offers two escooters – Ather 450X and Ather 450S.

The startup has two manufacturing plants in Tamil Nadu with a combined capacity to produce 4.2 Lakh scooters annually. Now, it is planning to set up a third manufacturing facility in Maharashtra.

Additionally, Ather Energy has a network of 1,700+ fast charging stations across the country and plans to scale this number up to 5,000 by the end of the year.

The startup competes with the likes of Ola Electric, TVS Motor, Bajaj and Hero MotorCorp’s Vida.