Hero MotoCorp has strengthened its position in the electric mobility sector by increasing its stake in Ather Energy by 3%, infusing nearly Rs 140 crore through the acquisition of additional shares. This move elevates Hero MotoCorp’s ownership in Ather Energy to 39.7%. The investment follows Ather Energy’s successful fundraising efforts in September, where it secured Rs 900 crore from Hero MotoCorp and GIC through a rights issue. Ather Energy, a prominent player in the electric two-wheeler space, is reportedly gearing up for a potential initial public offering (IPO) by the end of 2024 or early 2025.
Despite Ather Energy witnessing a noteworthy surge in revenue from operations, the fiscal year ending March 2023 saw a substantial increase in losses. The company experienced losses exceeding 2.5 times, reaching Rs 864.5 crore compared to Rs 344.1 crore in the previous fiscal year. This considerable escalation in losses occurred even with a threefold increase in total expenses, which soared to Rs 2,670.6 crore.
Established in 2013 by IIT Madras alumni Mehta and Swapnil Jain, Ather Energy boasts a noteworthy list of backers, including Hero MotoCorp, GIC, NIIF, Sachin Bansal, and Tiger Global. In a strategic collaboration, Hero MotoCorp and Ather Energy recently joined forces to establish an interoperable fast-charging network for electric two-wheelers in India, recognized as the world’s first of its kind.
The ongoing partnership between Hero MotoCorp and continued investments in Ather Energy underscore a growing interest and commitment to fostering Ather Energy’s growth and contributing to the broader expansion of electric mobility in the country. As the electric vehicle landscape evolves, such collaborations and investments are instrumental in driving innovation and sustainability in the automotive industry.