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Electric scooter manufacturer Ather Energy has entered into an agreement to raise Rs 550 crore from multinational motorcycle manufacturer Hero MotoCorp. The Bengaluru-based company will be raising funds via right issue.
Hero MotoCorp has passed a resolution in its board meeting held on September 4 to invest Rs 550 crore via Series E2 compulsory convertible preference shares under the right issue plan, the company’s disclosure accessed from the National Stock Exchange (NSE) shows.
Hero MotoCorp is an existing investor and associate company of Ather and holds 33.1% of the stake prior to allotment. Previously, the firm co-led a $128 million round in Ather in May 2022.
“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.
As per Fintrackr’s estimates, Ather Energy was valued at around $750 million during a $50 million round in October last year. The company was on the verge of becoming the second unicorn in EV space after Ola Electric. However, the company reportedly delayed the plan of equity fundraise worth $250 million.
August saw over 59,000 electric two-wheelers sold in India and Ola Electric leads the space with a market share of about 29.31% followed by TVS and Ather Energy which sold 14,584 and 6,835 units respectively.
Ather’s revenue from operations surged 4.4X to Rs 1806.1 crore in FY23 from Rs 413.8 crore, according to disclosure accessed through NSE filing. Meanwhile, its losses reportedly jumped by 151.2% to Rs 864.5 crore in the last fiscal year [FY23].
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