Hero MotoCorp, one of India's leading two-wheeler manufacturers, has solidified its commitment to the electric vehicle (EV) sector by acquiring an additional 3% stake in Ather Energy, a prominent player in the electric mobility space. This strategic move involves an investment of Rs 140 crore (approximately $16.8 million) and is part of Hero MotoCorp's ongoing efforts to strengthen its position in the rapidly evolving EV market.
The transaction, revealed through regulatory filings, signifies Hero MotoCorp's intent to deepen its involvement with Ather Energy. By purchasing additional shares from existing stakeholders, including notable names such as Tiger Global, GIC, Caladium Investment, and Navi founder and CEO Sachin Bansal, Hero MotoCorp is set to increase its stake in Ather Energy from 36.7% to 39.7%. This move follows Hero MotoCorp's earlier investment of Rs 550 crore in Ather as part of a larger funding round.
Ather Energy, based in Bengaluru, recently garnered attention by raising Rs 900 crore ($108 million) in September from Hero MotoCorp and GIC through a right issue. The company had previously secured $128 million in its Series E round in May 2022, reaching a valuation of $750 million. While the latest valuation remains undisclosed, Ather's financials for the fiscal year ending March 2023 showcase substantial growth, with revenue from operations surging 4.36 times to Rs 1,784 crore. However, the company also reported increased losses, rising 2.5 times to Rs 864.5 crore in FY23.
Ather Energy is now rumored to be gearing up for an initial public offering (IPO), aiming to get listed by Diwali 2024 or early 2025. This aligns with the broader trend in the EV sector, with companies seeking to capitalize on the growing interest in sustainable transportation.
Comparatively, Ather's competitor, Ola Electric, has also witnessed impressive growth. Ola Electric reported a staggering 510% increase in total revenue, reaching Rs 2,782 crore in FY23, up from Rs 456 crore in FY22. Ola Electric is anticipated to file IPO papers before December 20, further highlighting the intensified competition and investor interest in the Indian electric mobility landscape.
As the EV sector continues to gain momentum, Hero MotoCorp's strategic investments in Ather Energy underscore its commitment to staying at the forefront of the evolving automotive landscape, fostering innovation, and contributing to a sustainable future. Stay tuned for more updates on the dynamic developments in the electric vehicle space.
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