Hero MotoCorp Bolsters Stake in Ather Energy by INR 140 Crore
Hero MotoCorp Bolsters Stake in Ather Energy by INR 140 Crore

Hero MotoCorp, a major investor in Ather Energy, has increased its ownership in the electric scooter company by purchasing more shares worth INR 140 crore. This move, disclosed in a regulatory filing, boosts Hero MotoCorp's stake in Ather from 36.7% to 39.7%.

Ather Energy has received investments from various entities including Tiger Global and GIC, a Singaporean sovereign wealth fund. Recently, in September, the electric scooter manufacturer secured INR 900 crore in funding from Hero MotoCorp and GIC. This follows Hero's earlier involvement in a USD 128 million fundraising effort for Ather in January 2022.

Beyond financial backing, Hero MotoCorp and Ather Energy are collaborating closely. They've inked an agreement to establish a widespread fast-charging network across India for two-wheelers. This initiative, announced on December 6, aims to cover 100 cities with over 1,900 fast charging points.

Ather Energy's expansion into Nepal marked its first international venture, setting up a store in Kathmandu. Additionally, the company is gearing up to introduce a new 'family scooter' in early 2024, diverging from its current focus on performance-centric scooters like the 450 series.

Despite revenue growth to INR 1,784 crore in FY23, Ather witnessed widened losses, reaching INR 864.5 crore during the same period.

Hero MotoCorp's raised investment in Ather comes at a time when Ola Electric, a key player in the electric two-wheeler market, plans to file a Draft Red Herring Prospectus (DRHP) for an IPO. Ola Electric aims to raise between USD 700 million and USD 800 million (INR 5,836.3 crore and INR 6,670.1 crore) with an IPO valuation projected between USD 7 billion and USD 8 billion (INR 58,363 crore and INR 66,701 crore) in early 2024.

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