Hero MotoCorp intends to invest $16.8 M for additional 3% stake in Ather Energy

Hero MotoCorp, led by Pawan Munjal, plans to invest up to INR 140 Cr ($16.8 Mn) to acquire an extra 3% of Bengaluru-based EV startup Ather Energy. As a result of this agreement, Hero’s current 36.6% stake in Ather will grow to 39.7%, according to a regulatory filing the former made 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.

Through a rights issue in September of this year, Ather was able to raise INR 900 Cr (roughly $108 Mn) from its current shareholders, Hero MotoCorp and Singapore’s GIC.

Hero MotoCorp and Ather Energy also partnered earlier this month to create an interoperable fast-charging network in India. EV users will be able to use VIDA and Ather Grids nationwide with ease thanks to this agreement. Together, the networks will provide over 1900 fast charging stations across 100 cities.

Tarun Mehta and Swapnil Jain founded Ather in 2013, making it a significant player in the Indian two-wheeler EV market. Ather 450X and Ather 450S are the two escooters that are currently available. Ather has raised $400 million in funding since its founding before this investment.

Additionally, Ather asserts that its fast-charging network is the biggest in the nation. More than 1,400 charging stations can be found in more than 99 cities, such as Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, and Jaipur.

Its rivals include TVS, Ola Electric, Ampere, Okinawa, Revolt, and others.

Additionally, Ather asserts that its fast-charging network is the biggest in the nation. More than 1,400 charging stations can be found in more than 99 cities, such as Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, and Jaipur.

Its rivals include TVS, Ola Electric, Ampere, Okinawa, Revolt, and others.

In FY23, Ather Energy declared a net loss of INR 864.5 Cr. Compared to a loss of INR 344.1 Cr in FY22, this represents a YoY increase of more than 150%. The operating revenue of the electric vehicle startup experienced a 4.3X increase to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in FY22, while its total expenses more than tripled to INR 2,670.6 Cr from INR 757.9 Cr in FY22.