According to Tracxn, the Bengaluru-headquartered company achieved a valuation of USD 739 million in its previous funding round of USD 50 million in October of the previous year.
Ather Energy, the electric scooter manufacturer, is on track to secure INR 550 crore from its major stakeholder, Hero MotoCorp, a motorcycle manufacturer.
In an announcement to the stock exchanges on Monday, Hero MotoCorp revealed that its board has approved a decision to contribute the funds to Ather Energy’s rights issue.
Presently, the motorcycle manufacturer holds a 34.2% ownership stake in Ather, as per information from Tracxn. In January of the preceding year, Hero MotoCorp played a significant role in a fundraising round that raised USD 128 million for Ather.
As of October last year, Ather had achieved a valuation of USD 739 million through a fundraising round of USD 50 million, as reported by Tracxn. Although initial reports indicated that the company intended to secure an additional USD 250 million at a valuation of USD 1.3 billion this year, those plans were put on hold due to a downturn in technology funding and a decline in sales following the discontinuation of government electric vehicle subsidies in June.
In August, Ather recorded the sale of 6,835 units, according to Vahan, the government’s automobile registration portal. This figure contrasts with the sales of 12,184 units in March and 15,420 units in May of the same year when the subsidies were still applicable. The electric two-wheeler market saw more than 59,000 units sold in August, with Ola Electric leading the segment by selling 17,389 units.
On August 11, Ather introduced its entry-level electric scooter model, the 450S, boasting a range of 115 km. Another model in their lineup, the 450X, is available with either a 115-km or 145-km range. Shortly thereafter, a competitor, Ola Electric, unveiled its scooter model, the Ola S1 X, and announced intentions to launch electric bikes in four variations by the close of 2024.
According to Hero Motocorp’s annual report, Ather’s revenue from operations surged over fourfold to INR 1,806.1 crore in FY23. However, losses expanded by over 150%, amounting to INR 864.5 crore.