- Ather Energy will be using these funds to develop its facilities
- The company is planning to launch its latest offering, Ather 450X, across India
Electric Vehicle startup has raised Rs 840 Million (Rs 84 Crore) from one of world’s largest two-wheeler maker Hero MotoCorp. The funding was raised during series C round.
We’re excited to announce an investment of ₹84 crores from Hero MotoCorp, as an extension of our Series C round. The investment will be used to further develop our facilities as we prepare to take the Ather 450X across the country,” read a recent social media post by Ather Energy.
Ather Energy will be using the funds to develop its facilities. The company is planning to launch its latest offering, Ather 450X, across India
Hero Motocorp is the largest investor in Ather
Hero Motocorp is the largest investor in India-headquartered Ather Energy. The company, before this recent investment had raised about $100 million (Rs 714 crore). Hero Motocorp hold 31 per cent stake in the company.
Ather Energu had recntlt announced that it will be moving its manufacturing location from Bengaluru to a larger unit in Hosur, Tamil Nadu. This new plant will primarily manufacture 1,00,000 units in the beginning. The manufacturing capability can be raised to half a million depending on the demand.
EV market in India
In its nascent stages, EC market in India, is still waiting to witness a boom like in the western countries. In order to promote the sale of electric vehicles in the Indian market, the government of India had launched FAME scheme (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) in April 2015.
According to a recent report by Report Linker, India electric vehicle ecosystem market will reach a value of $216.3 billion by 2030. The EV market is anticipated, as per the report, to grow at a robust CAGR of 43.13 per cent during the forecast period from 2019 to 2030. Additionally, installation of charging infrastructure is projected to grow at a CAGR of 42.38 per cent.
“The government target for 30 per cent adoption of electric vehicles by 2030 will be majorly driven by the electrification of two-wheeler, three-wheeler, and commercial vehicles. Lower rate of adoption of electric vehicles in passenger vehicle segment is expected to have a limited impact in achieving the targets,” the report read.