Hero MotoCorp to invest Rs 550 Cr in Ather Energy
Hero MotoCorp has already invested over Rs 1,000 crore in Ather Energy, a Bengaluru-based EV company, and holds 33.1% in the company.
will invest an additional Rs 550 crore in electric scooter manufacturer .
The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature, according to a filing with the stock exchange.
The board of directors of Hero MotoCorp approved an investment of up to Rs 550 crore in the rights issue of Ather Energy at its meeting held September 4, the filing said.
The investment approval comes as the electric vehicle manufacturer sought to close a funding round before its first public offering.
Hero MotoCorp has invested over Rs 1,000 crore in Bengaluru-based Ather Energy and holds 33.1% of the company. The fresh investment is being made in Series E2 compulsory convertible preference shares.
Ather recorded sales of Rs 1,806 crore in FY22-23, up from almost Rs 414 crore in FY21-22 and nearly Rs 80 crore in the previous fiscal.
The EV manufacturing company was founded in 2013 by Tarun Mehta and Swapnil Jain. Ather has more than 1,400 charging stations in over 100 cities. It manufactures three electric scooters: Ather 450X, Ather 450 Plus, and Ather 450S.
The company sold 8,062 units in August this year, an increase of 25.77% from 6,410 units sold in August 2022. It sold 7,858 units in July this year.
In July, Ather Energy entered into a partnership with Bharat Petroleum Corporation Limited to expand its charging network.
The company secured $50 million in equity funding in October, backed by Caladium Investment Pte Ltd and Herald Square Ventures, led by Navam Capital.
Ather was valued at $700 million during its last fundraise in October and was seeking to raise another round to achieve unicorn status.
Edited by Swetha Kannan