Ather Energy, a maker of electric scooters, and Hero MotoCorp, a global manufacturer of motorcycles, have agreed to raise Rs 550 crore. The Bengaluru-based business will use the right issue to raise money.
According to the company’s disclosure obtained from the National Stock Exchange (NSE), Hero MotoCorp’s board of directors decided to invest Rs 550 crore via Series E2 compulsory convertible preference shares under the right issue plan. This decision was made on September 4.
Before shares were distributed, 33.1% of the company’s equity was held by Hero MotoCorp, an existing investor and associate company of Ather. Previously, in May 2022, the company co-led a $128 million round in Ather.
“The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature,” the disclosure mentioned.
In a $50 million round in October of last year, Ather Energy was reportedly valued at around $750 million. After Ola Electric, the company was on the verge of becoming the second unicorn in the EV industry. The $250 million equity fundraising plan, however, was reportedly delayed by the company.
Over 59,000 electric two-wheelers were sold in India in August, with Ola Electric leading the market with a share of about 29.31%. TVS and Ather Energy followed, selling 14,584 and 6,835 units, respectively.
According to information obtained through an NSE filing, Ather’s operational revenue increased 4.4X to Rs 1806.1 crore in FY23 from Rs 413.8 crore. In the meantime, its losses are said to have increased by 151.2% to Rs 864.5 crore in FY23.
