Bengaluru-based electric vehicle (EV) startup, Ather Energy, has secured a significant investment of INR 550 crore from existing investor Hero MotoCorp. This infusion of capital comes as part of Ather’s ongoing funding efforts, further solidifying the collaboration between the two prominent players in the Indian EV industry.
Hero MotoCorp’s Substantial Investment
Hero MotoCorp, a leading two-wheeler manufacturer, announced its commitment to invest up to INR 550 crore in Ather Energy through a rights issue. This investment will involve subscribing to Ather’s Series E2 compulsory convertible preference shares. Hero MotoCorp initially invested in Ather in 2016 and currently holds a 33.1% stake in the startup. With the upcoming rights issue, Hero’s shareholding in Ather is set to increase even further. The rights issue is expected to conclude by September 30.
Ather Energy’s Previous Funding Rounds
This funding round comes nearly 11 months after Ather secured $50 million from Caladium Investment. In May of the previous year, the startup raised $128 million in its Series E round, with investments from NIIFL and Hero MotoCorp, among others. Ather Energy’s total funding to date exceeds $400 million.
Ather’s Prominent Position in the Indian EV Market
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has emerged as a significant player in the Indian two-wheeler EV market. The company currently offers two electric scooters, the Ather 450X and Ather 450S, which have gained popularity among consumers.
Extensive Charging Infrastructure of Ather Energy
Ather Energy has also made substantial strides in building EV infrastructure, boasting the largest fast-charging network in India. With over 1,400 charging points spread across more than 99 cities, including Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, and Jaipur, Ather has facilitated convenient and accessible charging solutions for its growing user base.
Performance and Competition of Ather Energy
In terms of sales performance, Ather registered 6,780 units of its electric scooters in August, marking a slight month-on-month increase of 1.6% from 6,671 units in July. While Ather continues to establish itself as a key player in the EV market, its competitor, Ola Electric, registered 17,331 units in August, maintaining its leadership in the two-wheeler EV sector.
Ather Energy competes with various other players in the Indian EV landscape, including Ampere, Okinawa, Revolt, TVS, among others.
Impressive Revenue Growth
According to Hero MotoCorp’s filing, Ather Energy reported a substantial increase in revenue, reaching INR 1,806 crore in FY23, compared to INR 408.5 crore in FY22. Although the filing did not disclose specific profit or loss figures for FY23, it indicated that Ather’s net loss had increased by 47%, reaching INR 344 crore in FY22. These figures reflect the startup’s rapid growth and ambition in the Indian electric vehicle market.
