New Delhi: Leading electric two-wheeler manufacturer, Ather Energy, has announced a significant INR 900 crore rights issue from its current shareholders, Hero MotoCorp and GIC. This infusion of funds is earmarked for several key initiatives, including the launch of a new product, expansion of charging infrastructure, and the growth of its retail network.
Expanding Product Portfolio and Footprint
Ather Energy’s CEO and Co-founder, Tarun Mehta, expressed his satisfaction with the strong support received for the rights issue, highlighting the shareholders’ confidence in the company’s vision. Mehta noted the rapid transition to electric vehicles (EVs) in India, particularly in the two-wheeler segment, and emphasized Ather’s commitment to leading this transition with world-class technology and domestically developed products.
The company’s plans for the 2023-24 fiscal year involve its largest allocation yet for research and development, enabling the expansion of its product portfolio while increasing its market presence.
Impressive Growth in FY23
In FY23, Ather Energy reported a remarkable increase in income, surging by 4.4 times to reach INR 1,783 crore, up from INR 408 crore in FY22. The company also quadrupled its retail presence, growing from 30 to 130 outlets within a year. Ather Energy currently boasts over 200 retail touchpoints spanning more than 100 locations, complemented by one of the most extensive public fast-charging networks for electric two-wheelers, featuring over 1,500 Ather Grids.
Hero MotoCorp’s Investment
Hero MotoCorp, an existing shareholder of Ather Energy, is set to subscribe to a rights issue by the Bengaluru-based electric scooter manufacturer. Hero MotoCorp presently holds a 33.1% equity stake in Ather Energy and plans to invest up to INR 550 crore. Following this fresh investment in Ather Energy’s Series E2 Compulsory Convertible Preference Shares, Hero MotoCorp’s stake in the EV company will increase further, although the exact increment will be determined after the rights issue concludes.
Driving Affordability with Financing Partnerships
In a bid to make EV scooters more accessible to consumers, Ather Energy recently collaborated with IDFC First, Bajaj Finance, and Hero FinCorp to introduce a 60-month vehicle loan product. The company expects to bring more retail financiers and banks on board to further this goal, promoting the adoption of electric two-wheelers in India.