SUMMARY
Existing investor Sachin Bansal, cofounder of Flipkart, has divested a significant portion of his shares to Nikhil Kamath, cofounder of Zerodha
Ather Energy is reportedly in the final stages of securing $75-$90 Mn (approximately INR 750 Cr) in primary funding from its existing investors
An existing investor might lead the upcoming funding round, potentially valuing Ather Energy at anywhere between $850 Mn and $1 Bn
Ather Energy, an electric two-wheeler manufacturer, is reportedly seeking substantial funding through a combination of primary and secondary share sales.
Existing investor Sachin Bansal, cofounder of Flipkart, has divested a significant portion of his shares to Nikhil Kamath, cofounder of Zerodha, ET reported. Moreover, Kamath might even acquire Bansal’s remaining stake in the company.
Ather Energy is in the final stages of securing $75-$90 Mn (approximately INR 750 Cr) in primary funding from its existing investors. Additionally, efforts are underway to attract new investors into the fold, signaling further expansion and potential opportunities for the company.
The primary funding round structure for Ather Energy is still under negotiation.
An existing investor might lead the upcoming funding round, potentially valuing Ather Energy at anywhere between $850 Mn and $1 Bn. If it is valued at $1 Bn in new funding round, it will also enter the coveted unicorn club.
“Among my private equity investments, this will be among the largest bets that I have made… I truly believe in the product and I am looking to have a good amount of exposure to Ather for the next decade,” Kamath said, as quoted in the report.
An email to Ather Energy seeking clarification on the development remained unanswered at the time of publishing this article.
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.
The EV startup raised INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue last year. Ather said it would use the fresh funds to launch new products and expand its charging infrastructure and retail network.
Ather Energy’s net loss surged over 150% in the year ended March 31, 2023. The EV startup reported a loss of INR 864.5 Cr in the financial year 2022-23 (FY23) as against a loss of INR 344.1 Cr in FY22, despite a strong growth in its sales.
Operating revenue ballooned 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year. Ather Energy’s operating revenue stood at INR 80 Cr in FY21.
