[Update] Ather Energy Raises INR 900 Cr From Hero MotoCorp, GIC

Update: September 6 | 05:30 PM

The EV startup said in a statement on Wednesday it has raised INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue.

Ather said it would use the fresh funds to launch new products and expand its charging infrastructure and retail network.

The startup claims to have over 200 retail touchpoints across over 100 cities.

“… We have always believed that this (EV) transition will be led by world class technology and products designed and built in India and this year will be no different with our largest outlay on research and development yet, planned in 2023-24. This round will allow us to expand our product portfolio while expanding our footprint,” Ather CEO and cofounder Tarun Mehta said.

Original Copy: September 4 | 11:20 PM

Bengaluru-based EV startup Ather Energy is raising INR 550 Cr from existing investor Hero MotoCorp. 

Hero MotoCorp, in an exchange filing, said it would invest up to INR 550 Cr in Ather via its rights issue by subscribing to the EV startup’s Series E2 compulsory convertible preference shares.

Hero Motorcorp first invested in the EV startup in 2016 and currently holds a 33.1% stake in it. Its shareholding will further increase following the rights issue, which is expected to close by September 30.

The funding round comes almost 11 months after Ather raised $50 Mn from Caladium Investment. Prior to that, it raised $128 Mn from NIIFL and Hero MotoCorp in May last year as part of its Series E round. 

Overall, the startup has raised a total funding of over $400 Mn till date.

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

Ather also claims to have the largest fast-charging network in the country. It has over 1,400+ charging points in over 99 cities, including Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, Jaipur.

Registrations of Ather’s escooters stood at 6,780 units in August, a marginal rise of 1.6% from 6,671 units in July. Its rival Ola Electric’s registrations declined 10.4% month-on-month to 17,331 units in August but it continued to lead the two-wheeler EV space.

Besides Ola Electric, Ather competes with Ampere, Okinawa, Revolt, TVS, among others.

Ather’s revenue stood at INR 1,806 Cr in FY23, a massive jump from INR 408.5 Cr in FY22, as per Hero MotoCorp’s filing. While the filing didn’t mention profit/loss numbers for FY23, Ather’s net loss rose 47% to INR 344 Cr in FY22.