Two-wheeler giant Hero MotoCorp announced on Sunday that its board of directors has granted approval for an investment of INR 550 crore (approximately $74 million) in Ather Energy, an electric two-wheeler manufacturer. Hero MotoCorp has been an existing investor in Ather Energy.
This strategic investment comes at a pivotal juncture as Ather Energy was actively seeking to conclude a pre-IPO funding round, with indications pointing towards potential IPO plans by 2024. The decision underscores Hero MotoCorp’s commitment to the rapidly growing electric vehicle (EV) segment in India.
Tarun Mehta, co-founder and CEO of Ather Energy, emphasized the significance of profitability as a prerequisite for considering an IPO. He stated, “Profitability is key for us, and we will only then look at an IPO. The market condition should also be right, and we will have to turn profitable to think about that. Our sales numbers are great, demand is growing, and we are very bullish on the segment we operate in.”
In October 2022, Ather Energy successfully raised $50 million in equity funding, led by its existing investor Caladium Investment Pte Ltd, with participation from Herald Square Ventures, backed by Navam Capital.
During its last funding round in October 2022, Ather was valued at $700 million. The EV company had been actively seeking another round of funding, potentially elevating its status to that of a unicorn within the EV sector.
Established in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy specializes in the manufacturing of two electric scooters – the Ather 450X, Ather 450 Plus, and Ather 450S. The company operates a manufacturing facility in Hosur, Tamil Nadu, and recently inaugurated a second facility in the same district. Ather Energy is aiming to ramp up its production capacity from the current 4.2 lakh units annually to nearly 15 lakh units per annum.
In the latest sales figures, Ather Energy recorded the sale of approximately 6,835 units, marking a 2 percent increase from the previous month. The Bengaluru-based EV manufacturer is eyeing a significant market share expansion to approximately 30-40 percent in the coming years with the introduction of its cost-effective 450S scooter in the 125cc category.
Sources By Agencies