Hero MotoCorp is set to make an additional investment of Rs 550 crore in the electric scooter manufacturer Ather Energy. This investment is contingent upon the completion of customary transaction conditions and the execution of definitive documents, as stated in a filing with the stock exchange. Hero MotoCorp’s board of directors gave their approval for this investment during a meeting held on September 4, 2023. Ather Energy is currently in the midst of a funding round before its planned initial public offering.
Hero MotoCorp has already made substantial investments in Ather Energy, totaling over Rs 1,000 crore, and currently holds a 33.1% stake in the company. This new investment will be made in the form of Series E2 compulsory convertible preference shares.
In terms of financial performance, Ather Energy reported sales of Rs 1,806 crore in the fiscal year 2022-23, a significant increase from Rs 414 crore in the previous fiscal year (2021-22) and nearly Rs 80 crore in the fiscal year before that. Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has expanded its reach with more than 1,400 charging stations in over 100 cities. The company’s electric scooter lineup includes the Ather 450X, Ather 450 Plus, and Ather 450S. Notably, the company witnessed a 25.77% increase in unit sales in August 2023 compared to the same period in 2022, selling 8,062 units. In July, Ather Energy entered into a strategic partnership with Bharat Petroleum Corporation Limited to further expand its charging network.
Ather Energy had previously secured $50 million in equity funding in October, with support from Caladium Investment Pte Ltd and Herald Square Ventures, led by Navam Capital. During its last funding round in October, the company was valued at $700 million and is currently seeking additional funding to attain unicorn status.
