Ather.
Bangalore-based electric two-wheeler manufacturer Ather Energy has raised Rs 900 crore from existing investors Hero MotoCorp and Singapore-based investment fund GIC through a rights issue, the company said on Wednesday.
Hero MotoCorp will invest up to Rs 550 crore in the electric vehicle company, pursuant to completion of certain conditions, as per an exchange filing. The world’s largest two wheeler maker has an existing stake of 33.1% in Ather and said the fresh investment will raise its stake further. The extent of the new stake or the valuation were not disclosed, pending closure of the issue.
Ather said it plans to use the capital to launch new products, expand its charging infrastructure, which currently is 1,500 fast-charging points for two-wheelers across the country, and increase its retail presence.
“Last few years have demonstrated just how quick the EV transition in India can be and how it will be led by 2 wheelers. This round will allow us to expand our product portfolio while expanding our footprint,” Tarun Mehta, chief executive and co-founder of Ather said. He added that the company has planned its largest outlay on research and development in 2023-24.
The company currently has over 200 retail touchpoints across 100+ cities in India. It has also expanded its network of retail outlets to 130, up from 30 stores last year.
Ather also reported growth in revenue last fiscal, which jumped 4.4 times to Rs 1,783 crore from Rs 408 crore in FY22.
The EV manufacturer was valued at $739 million in a round last year. The company has overall raised close to $336 million since its inception in 2013, and counts Tiger Global, Flipkart founders Sachin Bansal and Binny Bansal, and India’s quasi-sovereign fund NIIF among its investors, according to start-up data platform Traxcn.
In a bid to expand the Ather Grid further, it recently collaborated with state-owned Bharat Petroleum Corporation Limited, which will allow Ather to access all of the oil company’s 21,000 fuel pumps to set up charging stations.
The company also introduced new, and more affordable, products to its portfolio last month in an effort to lure more customers in India’s price-sensitive market. Apart from an entry level product, the 450S, it launched 2.9 kWh and 3.7 kWh battery options in the flagship 450X.