Hero MotoCorp has approved an investment of up to ₹550 crore in the rights issue of Ather Energy, marking a significant move in the Indian electric vehicle (EV) market. Before this investment, Hero MotoCorp held a 33.1% share in Ather Energy.
The Company, a Bengaluru-based startup, has been making strides in the EV sector with its electric scooters. Last month, it launched the entry-level electric scooter model, the 450S, priced at ₹1.29 lakh (ex-showroom Delhi). The 450S offers a battery capacity of 2.9 kWh, a range of 115 kilometers, and a top speed of 90 km/hour.
The funding from Hero MotoCorp comes at a pivotal time for Ather Energy, which is planning to launch an initial public offering (IPO), potentially in 2024. The company raised $50 million in equity funding in October 2022, led by its existing investor Caladium Investment Pte Ltd, with participation from Navam Capital-backed Herald Square Ventures.
Ather Energy is focused on expanding its market share in the electric scooter segment and aims to capture 30-40% of the market with the launch of its 450S scooter in the 125cc category. The company already has over 1,400 chargers across 100 cities and recently partnered with Bharat Petroleum Corporation Limited (BPCL) to expand its charging network.
Through this collaboration, Ather will have access to BPCL’s extensive network of over 21,000 fuel stations across India, enabling the installation of Ather’s public fast-charging grid. In August, Ather Energy sold around 6,835 electric scooters, signaling the growing demand for EVs in India.
Hero MotoCorp’s increased investment in Ather Energy underscores its commitment to the electric mobility sector and its intention to expand its electric vehicle portfolio.
