Ather Energy has received Rs 900 crore investment from current shareholders Hero MotoCorp and GIC.
Ather intends to use the funding to launch a new product as well as expand its charging infrastructure and retail network.
Commenting on the investment, Tarun Mehta, CEO and Co-founder, Ather Energy, said, “There was strong support for the rights issue, and we are very happy to see the confidence exhibited by shareholders. The last few years have demonstrated just how quick the EV transition in India can be and how it will be led by electric two-wheelers”.
“We have always believed that this 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 for 2023–24. This round will allow us to expand our product portfolio while expanding our footprint”, he further added.
In FY23, Ather’s income increased by 4.4X to Rs 1,783 crore, up from Rs 408 crore in FY22. Ather also quadrupled its retail footprint, from 30 to 130 outlets in a year. Ather Energy currently has over 200 retail touchpoints in over 100 locations, as well as one of the largest public fast-charging networks for electric two-wheelers, with over 1,500 Ather Grids.
Incorporated in India in October 2021, Ather Energy is engaged in the business of designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to EVs and charging infrastructure, as well as storage, distribution, and management systems, or all forms of electric power (including energy in the form of batteries) and other ancillary services.
Hero MotoCorp plans to subscribe to a rights issue of Bengaluru-based electric scooter manufacturer Ather Energy. Hero MotoCorp, an existing shareholder of Ather Energy, currently has a 33.1% equity stake in the EV maker and will invest up to Rs 550 crore.
With this fresh investment in the EV OEM’s Series E2 Compulsory Convertible Preference Shares, Hero MotoCorp’s stake in Ather Energy will rise above 33.1%, although the specific level of increment will be known only after the closure of the rights issue.
The company recently partnered with IDFC First, Bajaj Finance, and Hero FinCorp to introduce a 60-month vehicle loan product that will make EV scooters more affordable and expects more retail financiers and banks for this goal.