Hero MotoCorp, a prominent player in the Indian two-wheeler market, has increased its stake in Ather Energy, an electric vehicle company, with a strategic investment of INR 140 crore (approximately $16.8 million). The move is part of Hero MotoCorp’s ongoing commitment to the electric mobility sector.
The investment, as outlined in regulatory filings, involves the purchase of an additional 3% stake in Ather Energy. This will raise Hero MotoCorp’s overall stake in Ather from 36.7% to 39.7%. The transaction is facilitated through the acquisition of additional shares from existing shareholders of Ather, which include notable entities such as Tiger Global, GIC, Caladium Investment, and Navi founder and CEO Sachin Bansal.
Ather Energy, based in Bengaluru, had earlier secured Rs 900 crore ($108 million) in September through a rights issue, with contributions from Hero MotoCorp and GIC. As part of this round, Hero MotoCorp had committed to invest Rs 550 crore in Ather.
In its Series E funding round in May 2022, Ather had raised $128 million, achieving a valuation of $750 million. The latest valuation of the company, however, remains undisclosed.
Ather Energy has been making significant strides in the electric vehicle space, evident in its financial performance. The company reported a remarkable 4.36X surge in revenue from operations, reaching Rs 1,784 crore during the fiscal year ending March 2023. Concurrently, losses also increased, rising 2.5X to Rs 864.5 crore in FY23 from Rs 344 crore in FY22.
Reports suggest that Ather is gearing up for an initial public offering (IPO) with plans to get listed by Diwali 2024 or early 2025. As the electric mobility landscape evolves, partnerships like the one between Hero MotoCorp and Ather Energy are expected to play a crucial role in shaping the future of sustainable transportation in India.
