Two-wheeler major Hero MotoCorp has invested ₹124 crore in electric scooter maker Ather Energy to pick up a further 2.2 per cent stake.

With the funding, Hero MotoCorp, which was the largest shareholder in Ather Energy, now holds nearly 39 per cent of the firm’s total shareholding. The latest funding happened at an inferred valuation of ₹5,636 crore, a premium to the valuation of ₹4,666 crore at which Hero MotoCorp had invested ₹140 crore into the firm in December last year.

Ather Energy saw a 1.5 per cent decline in scale during the previous fiscal year (FY24). Ather’s revenue from operations decreased to ₹1,754 crore in FY24 from ₹1,781 crore in FY23.

The sale of scooters was the primary source of revenue for Ather while after-sale and subscription services were other income channels.

The company has not revealed its losses for the fiscal year ending March 2024. The Tarun Mehta-led firm’s revenue jumped by 4.36X while its losses grew 2.5X to ₹864.5 crore in FY23.

As per Vahan data, Ather was the fourth largest two-wheeler EV manufacturer which controlled 9.45 per cent market share in May. Ola Electric maintained the top position followed by TVS and Bajaj. Ather sold 6,024 units in the last month, up from 4,000 units in April. In March, its total sales stood at 17,000 units.

The investment comes just a week after the company raised ₹286 crore from its founders and Stride Ventures in a mix of debt and equity funding.

Ather is finalising plans to raise $75-90 million in primary funding from new and existing investors, with the funding round likely to be led by an existing investor, which might value the firm between $850 million and $1 billion, according to reports.

Recently, it launched its family scooter range of ‘Rizta’. The firm, which has a total production capacity of 450,000 scooters per year, said it would expand production from the current 150,000 vehicles it makes per year after the Rizta hits the market.

Related Topics