Hero MotoCorp said it will be investing an additional Rs. 550 crore ($66 million) in Indian electric two-wheeler manufacturer Ather Energy.
“The board of directors of the company, at its meeting held on September 4, 2023, has approved an investment of up to Rs 550 crore in the rights issue of Ather Energy Private Limited,” Hero MotoCorp said in an NSE filing.
Hero MotoCorp, which already holds a 33.1% stake in Ather, said the exact shareholding will be determined upon completion of the capital raise round by Ather.
Ather has reportedly been looking to raise a funding round before its IPO in 2024. Reports suggest that the company had been seeking a primary infusion of about $250 million, at a post-money valuation of $1.3 billion.
Ather has raised $341 million over the years from investors including Tiger Global, Caladium Investments and Herald Ventures, per Crunchbase data.
Ather’s turnover for the year ended March 2023 grew significantly to Rs.1806.1 crore, from Rs. 413.8 crore in the corresponding period in 2022 and Rs. 79.8 crore in 2021.
The EV space in India has been buzzing with many startups such as Ather Energy, Altigreen, Ola Electric, BOLT, and Baaz Bikes raising funds from a host of investors including corporate VCs, impact investors, and automakers.
With escalating fuel prices, improved charging infrastructure, government subsidies, and concerns about the environment, more and more Indian consumers are making the switch to EVs.
According to data from Vahan, over 371,340 units of electric vehicles were sold in the second quarter of 2023, a whopping 66% year-on-year growth. These macro trends have spurred companies in the EV space to ramp up production.