Ather Energy raises ₹900 crore from Hero MotoCorp & GIC for new product launch

Ather Energy has announced raising a fresh investment of ₹900 crore from its existing shareholders Hero MotoCorp and GIC through a rights issue. The announcement comes a day after Hero MotoCorp said that it will be infusing ₹550 in Ather in a regulatory filing. The electric two-wheeler maker plans to utilise the fresh funding for a new product launch, and expansion of charging infrastructure and retail network.

Ather Energy has not announced details on what the new product launch will be but recent reports suggested a new family electric scooter in the making at the company. At present, Ather has two models on sale - 450S and 450X. Both are based on the same platform but differ in battery output and features.

Ather says it will be utilising the funds for a new product launch

Commenting on the investment, Tarun Mehta, CEO and co-founder - Ather Energy, said, “There was strong support for the rights issue and we are very happy to see the confidence exhibited by shareholders. The last few years have demonstrated just how quick the EV transition in India can be and how it will be led by 2 wheelers. We have always believed that this transition will be led by world-class technology and products designed and built in India and this year will be no different with our largest outlay on research and development yet, planned in 2023-24. This round will allow us to expand our product portfolio while expanding our footprint."

For FY2023, Ather Energy says its revenue jumped 4.4x to ₹1,783 crore from ₹408 crore in FY2022. The manufacturer has also retailed its retail network four times from 30 outlets to 130 experience centres in a year. Ather says it has over 200 retail touchpoints in over 100 cities across the country. The company’s public fast-charging network stands at 1,500 Ather Grids.