Pawan Munjal-led Hero MotoCorp will buy an additional 3% stake in Bengaluru-based EV startup Ather Energy for up to INR 140 Cr ($16.8 Mn). With this deal, Hero’s stake in Ather will increase to 39.7% from the current 36.6%, the former said in a regulatory filing on Thursday (December 14).
“Currently, HMCL’s shareholding in Ather is 36.7% (on a fully diluted basis) of the paidup share capital of Ather. Post the purchase of additional shares, HMCL’s shareholding in Ather would increase to 39.7% (on a fully diluted basis) of the paid-up share capital of Ather,” the filing said.
In September this year, Ather raised INR 900 Cr (around $108 Mn) from its existing shareholders Hero MotoCorp and Singapore’s GIC through a rights issue.
Earlier this month, Hero MotoCorp and Ather Energy also entered into a partnership for an interoperable fast-charging network in India. Through this pact, EV users will be able to seamlessly use both VIDA and Ather Grids across the country. The combined network will cover 100 cities with over 1900 fastcharging points.
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. Before this investment, Ather has raised $400 Mn in funding since inception.
Ather also claims to have the largest fast-charging network in the country. It has over 1,400+ charging points in over 99 cities, including Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, Jaipur.
It competes with players such as Ola Electric, Ampere, Okinawa, Revolt, TVS, among others.
Ather Energy reported a net loss of INR 864.5 Cr in FY23. This is more than 150% YoY increase as against a loss of INR 344.1 Cr in FY22. The EV startup’s operating revenue ballooned 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year, while its total expenses more than tripled to INR 2,670.6 Cr from INR 757.9 Cr in FY22.
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