Ather Energy Secures Rs 900 Crore Investment from Hero MotoCorp and GIC Singapore

Hero MotoCorp, India's leading two-wheeler manufacturer in terms of volume, and Singapore's sovereign wealth fund GIC, have committed a substantial investment of Rs 900 crore ($108 million) into Ather Energy, doubling down on their support for the electric scooter manufacturer.

Ather Energy plans to deploy these funds strategically to introduce innovative products, expand its charging infrastructure, and bolster its retail network, as outlined in their recent statement.

Hero MotoCorp, earlier this week, disclosed its investment of Rs 550 crore in Ather Energy through a rights issue. This investment maintains Hero MotoCorp's stake in the electric mobility startup at 33.1%, with adjustments to its ownership expected once the ongoing fundraising process concludes.

Ather Energy reported a remarkable surge in revenue, with FY23 figures soaring to Rs 1,783 crore from Rs 408 crore in FY22. The company's retail footprint has also seen significant growth, expanding from 30 stores to 130 stores in just one year. Currently, Ather Energy boasts over 200 retail touchpoints spanning across more than 100 cities.

Notably, Ather Energy has diversified its product portfolio, introducing new variants with 2.9 kWh and 3.7 kWh battery options for its flagship 450X scooter, in addition to a new entry-level product, the 450S.This fundraising initiative comes at a juncture when the government has revised its subsidies for electric two-wheelers, resulting in a temporary dip in demand due to price adjustments.

Previously reported by VCCircle, Ather Energy had set its sights on raising $250 million and was poised to receive $25 million from the International Finance Corporation (IFC), aimed at scaling up manufacturing capabilities and launching new vehicle models.

Ather Energy, co-founded by Tarun Mehta and Swapnil Jain in 2013, stands as one of India's prominent electric two-wheeler manufacturers, in direct competition with industry players like Ola Electric. The company had achieved a valuation of approximately $800 million following a $50 million investment from GIC in October of the prior year.

Hero MotoCorp's involvement with Ather Energy dates back to its Series B funding round in 2016 when it initially acquired a stake of 26-30% in the startup. In May 2022, Ather Energy successfully secured $128 million in funding from the National Investment and Infrastructure Fund's Strategic Opportunities Fund, along with investments from Hero and other stakeholders. In 2020, Hero MotoCorp had contributed Rs 84 crore ($11.21 million) in an extension of the Series C funding round. Distinguished investor Sachin Bansal, co-founder of Flipkart, is among Ather Energy's notable backers.

For FY2022, Ather Energy recorded a loss of Rs 344 crore, but in FY2023, the company reported a significant turnaround with a turnover of Rs 1,806.1 crore, as indicated in the exchange filing.

Popular Ather ScooterAther 450x | Ather 450s