Nikhil Kamath Played Important Role in Ather Energy Significant Funding with Sachin Bansal’s Divestment

Key Highlights:

• Ather Energy seeks substantial funding through share sales.
• Sachin Bansal sells shares to Nikhil Kamath.
• Primary funding round targets $75-$90 Mn.

Ather Energy, a well-known electric two-wheeler manufacturer, is going on a big financial venture, using both primary and secondary share sales to increase its resources.

Sachin Bansal's Divestment

Sachin Bansal, co-founder of Flipkart and an existing investor in Ather Energy, has opted to divest a considerable portion of his shares to Nikhil Kamath, co-founder of Zerodha, according to a report by ET. Furthermore, there are indications that Kamath may acquire Bansal’s remaining stake in the company.

Primary Funding Round

Ather Energy is currently in the advanced stages of securing a substantial primary funding round, with targets ranging between $75 to $90 million (approximately INR 750 Crore). This infusion of capital is intended to fortify the company’s financial position and pave the way for further expansion initiatives.

Pursuit of New Investors

In addition to existing investors, Ather Energy is actively seeking to attract new stakeholders, underscoring its commitment to growth and the exploration of fresh opportunities within the market.

Valuation and Unicorn Prospects

Negotiations surrounding the valuation of Ather Energy are underway, with estimates placing the company’s worth between $850 million to $1 billion. Should the valuation reach the $1 billion mark, Ather Energy would attain coveted unicorn status, a significant milestone in its trajectory.

Kamath's Perspective

Nikhil Kamath expressed his confidence in Ather Energy, labelling it as one of his most substantial private equity investments. He emphasised his long-term belief in the company’s product and expressed a desire to maintain a significant stake in Ather Energy over the next decade.

Company Response

Despite attempts to seek clarification from Ather Energy regarding these developments, an official response has yet to be received.

Company Background

Established in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has emerged as a key player in the Indian electric two-wheeler market. The company’s current product lineup includes the Ather 450X and Ather 450S electric scooters.

Previous Funding and Utilization

Ather Energy had previously raised INR 900 Crore through a rights issue last year, with investments from shareholders such as Hero MotoCorp and GIC. The funds were earmarked for the introduction of new products and the expansion of the company’s charging infrastructure and retail network.

Financial Performance

Despite robust sales growth, Ather Energy witnessed a significant increase in net losses, exceeding 150% in the fiscal year ending March 31, 2023. Operating revenue, however, experienced a substantial surge, increasing by 4.3 times compared to the previous fiscal year.

Carbike360 Says

Ather Energy’s strategic moves in securing funding and realigning its shareholder base underscore its commitment to innovation and growth within the electric vehicle sector, positioning itself for future success amidst evolving market dynamics.