Hero MotoCorp, India biggest two-wheeler maker by volume, and Singapore sovereign wealth fund GIC have invested Rs 900 crore ($108 million) in Ather Energy, doubling down on their bets on the electric scooter manufacturer.
Ather plans to use the funds to launch new products and expand its charging infrastructure and retail network, the company said in a statement on Wednesday.
Earlier, Hero MotoCorp said in a stock-exchange disclosure Monday that it invested Rs 550 crore in Ather Energy through a rights issue.
The original equipment manufacturer currently holds a 33.1% stake in the electric mobility startup. It said its stake in Ather after the right issue would be determined after the fundraising concludes.
Ather said its revenue jumped to Rs 1,783 crore in FY23 from Rs 408 crore in FY22. It increased its retail footprint to 130 stores from 30 stores last year. Currently, Ather Energy has over 200 retail touchpoints across more than 100 cities, it said.
The company also said it recently expanded its product portfolio with 2.9 kWh and 3.7 kWh battery options in the flagship 450X scooter as well as an entry level product, the 450S.
The fundraising comes at a time when the government has slashed its subsidy for electric two-wheelers, which has caused demand to fall amid readjustment in prices.
VCCircle previously reported that Ather was in the market to garner $250 million and was set to receive $25 million from International Finance Corporation (IFC), as it looked to expand its manufacturing capacity and launch new vehicles.
Ather Energy - founded by Tarun Mehta and Swapnil Jain in 2013 - is one of the largest electric two-wheeler makers in India and competes with the likes of Ola Electric. It was last valued at about $800 million when it raised $50 million last October from GIC.
Hero MotoCorp had initially invested in the electric vehicle (EV) manufacturer during its Series B round in 2016, when it picked up a stake of 26-30% in the startup.
In May 2022, it announced raising $128 million from National Investment and Infrastructure Fund’s Strategic Opportunities Fund, Hero, and other investors.
Prior to that, in 2020, Hero had poured in Rs 84 crore ($11.21 million) from existing backer Hero MotoCorp Ltd as an extension of its Series C funding round. It also counts Flipkart co-founder Sachin Bansal among its investors.
The company reported a loss of Rs 344 crore in the financial year 2022. In FY23, the company had a turnover of Rs 1,806.1 crore as per the exchange filing, up from Rs 414 crore in the year before.
*This article has been updated to include Ather's statement and details of GIC's investment.
