Hero MotoCorp is set to increase its stake in the Bengaluru-based startup, Ather Energy. With a strong belief in India’s surging demand for electric two-wheelers, Hero MotoCorp plans to invest an additional Rs 140 crore into Ather Energy, elevating its equity stake from 36.7 per cent to 39.7 per cent. The company plans to complete the acquisition by January 31, 2024.
Ather Energy previously secured Rs 900 crore from Hero MotoCorp and GIC.
This decision follows a prior investment in September 2023, when Ather Energy secured Rs 900 crore from Hero MotoCorp and GIC through a rights issue. Moreover, Ather Energy used the funds from the previous investment to fuel new product launches and expand its charging and retail network.
Also Read: Hero MotoCorp And Ather Energy Form Partnership For EV Fast-Charging Network
In FY2023, Ather Energy achieved remarkable financial growth, reporting revenue of Rs 1,806 crore compared to Rs 413 crore in FY2022. With 100,416 e-scooters sold by December 15, 2023, Ather Energy stands among the country’s top three electric two-wheeler sellers.
The company plans to complete the acquisition by January 31, 2024.
Despite being a late entrant into the electric vehicle market, Hero MotoCorp introduced the Life electric scooter in October 2022. This was after its competitors, TVS Motor Company and Bajaj Auto had forayed into the electric two-wheeler space with the Qube and Chetak EV respectively.
Also Read: Hero MotoCorp To Enter EU and UK With Vida EV Brand; Showcases Vida V1 Coupe
Hero MotoCorp and Ather Energy have also partnered to create an inter-operable electric vehicle (EV) charging network in India. The aim is to establish a network that can be utilised by both Vida and Ather grids nationwide. The combined network will cover 100 cities and over 1,900 fast-charging points.
