Ather Energy, the leading electric two-wheeler manufacturer, has successfully raised Rs 900 crore through a rights issue, bolstering its expansion plans. The funding was secured from its existing shareholders, Hero MotoCorp and Singapore’s GIC, demonstrating their confidence in the company’s future prospects.
Hero MotoCorp, a major stakeholder with a 33.1% ownership in Ather Energy, announced its commitment to invest Rs 550 crore in the electric vehicle (EV) company through Series E2 Compulsory Convertible Preference Shares (CCPS).
Tarun Mehta, Co-founder and CEO of Ather Energy, expressed his gratitude for the strong support received from shareholders, stating, “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 two-wheelers.”
In the 2022-23 financial year, Ather Energy experienced significant business growth, with its revenue surging 4.4 times to reach Rs 1,783 crore, compared to Rs 408 crore in the previous fiscal year. Notably, the company’s retail network also expanded fourfold, reaching a total of 130 stores.
Ather Energy Thrives Amidst Industry Challenges, Sells 93,212 Units in FY23
Despite industry challenges following the reduction of FAME II concessions in June, Ather Energy maintained robust sales figures. In FY23, the company sold an impressive 93,212 units, marking a fourfold increase from the previous fiscal year. Moreover, in the first five months of the current financial year, Ather Energy has already sold over 41,500 units.
Ather Energy‘s commitment to expanding the EV charging infrastructure is evident through its partnership with BPCL, aiming to set up more charging stations across BPCL’s 21,000 fuel stations nationwide. This initiative aligns with Ather’s dedication to supporting the growth of electric mobility in India.
In the competitive EV market, Ather Energy’s closest rival, Ola Electric, is currently preparing for an initial public offering (IPO) with the goal of achieving a valuation of $10 billion. For the financial year ended March 31, 2022, Ola Electric reported revenue of Rs 456.26 crore, showcasing the continued growth and potential within the Indian EV sector.
Ather Energy’s successful fundraise and impressive growth trajectory signal a promising future for the company as it continues to shape the landscape of electric mobility in India.