In a strategic move to deepen its involvement in the electric vehicle (EV) sector, auto giant Hero MotoCorp has announced the acquisition of an additional 2.2% stake in Ather Energy, a prominent player in the Indian electric two-wheeler market.
The transaction, valued at INR 124 crore, reflects a valuation of INR 5,635 crore (approximately $675 million) for Ather Energy.
This development marks a slight decrease from the reported $750 million valuation during the EV startup’s Series E round in May 2022.
The investment by Hero MotoCorp involves the purchase of additional shares from an existing shareholder of Ather Energy, further solidifying the Hero MotoCorp’s position in the EV market.
This move follows Hero MotoCorp’s previous investment, wherein it acquired an additional 3% stake in Ather Energy for INR 140 crore, elevating its shareholding to 39.7% at that time.
Ather Energy has been actively raising funds to fuel its expansion plans.
Recently, the startup’s board approved a fundraising plan to secure INR 286.5 crore through a mix of equity and debt.
This initiative comes on the heels of a rights issue last year, through which Ather Energy raised INR 900 crore from existing shareholders Hero MotoCorp and GIC.
Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather Energy has emerged as a key player and is deeply involved in various aspects of the EV ecosystem, including the design, manufacturing, production, sale, and servicing of electric automobiles.
In addition to vehicles, Ather Energy focuses on software development and management related to EVs and their charging infrastructure.
Beyond its core vehicle operations, Ather Energy is also engaged in the storage, distribution, and management of electric power, including energy in the form of batteries.
This comprehensive approach encompasses all forms of electric power and other ancillary services, making Ather a versatile player in the EV market.
Ather Energy’s presence spans across India, reflecting its wide-reaching impact and growing influence in the industry.
The company’s financial performance underscores its rapid growth trajectory.
For the fiscal year ending March 31, 2024, Ather Energy reported a turnover of INR 1,753.8 crore.
This follows a turnover of INR 1,780.9 crore in the previous year and INR 408.5 crore for the year ending March 31, 2022, highlighting significant revenue growth over the past few years.
Looking ahead, Ather Energy is reportedly considering a listing on the stock exchange as early as the second half of 2024.
