India's Largest Electric Two Wheeler Maker Secures Capital From Hero Motocorp

Hero MotoCorp, a leading two-wheeler manufacturer, has invested Rs 124 crore into electric scooter maker Ather Energy, increasing its stake by an additional 2.2%. This investment solidifies Hero MotoCorp's position as the largest shareholder in Ather Energy, with its total shareholding now exceeding 40%. The latest funding round values Ather Energy at Rs 5,636 crore, up from the Rs 4,666 crore valuation during Hero MotoCorp's previous investment of Rs 140 crore in December last year.

Ather Energy's financial highlights indicate an estimated turnover of Rs 1,753 crore for FY24, slightly down from Rs 1,784 crore in FY23. The company reported a net loss of Rs 864 crore for FY23, while Hero MotoCorp did not disclose any loss for FY24. This financial landscape underscores the challenges Ather faces even as it continues to grow and attract investment.

In recent developments, Ather Energy raised Rs 286 crore (approximately $34 million) from its founders and Stride Ventures through debt and equity funding. Additionally, Ather is finalizing plans to raise $75-90 million (approximately Rs 750 crore) in primary funding from new and existing investors. This upcoming funding round is expected to value the company between $850 million and $1 billion, and it will likely be led by an existing investor. These investments reflect the ongoing confidence in Ather’s potential and its pivotal role in the EV sector.

Significant shareholder changes have also taken place, with Flipkart cofounder and one of Ather’s early investors, Sachin Bansal, selling a substantial portion of his stake to Zerodha cofounder Nikhil Kamath. Bansal is also looking to sell the remainder of his stake. This reshuffling of shareholders indicates a dynamic investment landscape as stakeholders position themselves in the evolving market.

Hero MotoCorp’s strategic investment underscores its commitment to the electric vehicle market and its confidence in Ather Energy’s potential for growth and innovation. As the largest shareholder, Hero MotoCorp is poised to influence Ather’s future direction and capitalize on the burgeoning EV market.