The funds will be utilized to expand Ather's pan India sales footprint. It manufactures two electric scooter models, the Ather 340 and Ather 450. Discover 5000+ schemes. Hero MotoCorp has not ruled out the possibility of taking majority control. Hero MotoCorp had used its convertible debt of $19 million (~1.41 billion) for the round.
Meanwhile, HeroMoto Corp shares closed trade at Rs 2,749.95 apiece, up 2.55 per cent, on the Bombay Stock Exchange. Currently, Ather Energy is one of the top electric two-wheeler manufacturers in India. Swadesh Srivastava, Head of Hero MotoCorp's Emerging Mobility Business Unit, said, In keeping with our vision 'Be the Future of Mobility', we are working on a variety of emerging mobility solutions. In December last year, Ather Energy had announced that it had signed a memorandum of understanding (MoU) with the government of Tamil Nadu to set up a two-wheeled electric vehicle and lithium-ion battery manufacturing facility. Enjoy Reading! The move comes at a time when the electric scooter industry is showing signs of slowing down after heady growth in the last three months- as high as 58 per cent in the month of March over February and 15 per cent in February over January in terms of registrations. Commenting on the company's future product programme, Mehta said at present, the company is in the premium electric-two wheeler segment with its 450X and 450 Plus models but "we want to pick up more and more segments, use the 450 platform to launch variants across the spectrum". Also Read: Reliance Capital exercises 'green-shoe' option to sell 8% stake in RNAM for Rs 1,100 crore, Also Read: PNB net loss narrows to Rs 9,975.49 crore in FY19 on lower provisions; asset quality improves, Copyright2022 Living Media India Limited. The vehicle is being developed at its R&D set-up the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich and will be produced at the company's manufacturing facility at Chittoor in the southern Indian state of Andhra Pradesh. Tarun Mehta, CEO of Ather Energy, said, The company is expected to increase its capacity from 10,000 a month to 35,000 a month by this year and we are already building a new factory. Our immediate focus over the next six to eight months is to establish Athers new 450X in a really strong place, scale up operations and kick-start our new production plant by December," said Mehta. "At a time when the world is increasingly moving towards partnerships, we remain open for further collaborations with suitable players in the emerging mobility space," he added. The funds will be used by Ather Energy to expand manufacturing facilities, invest in research and development, charging infrastructure, and grow its retail network. Ather Energy already has a robust retail sales network across the country, with a presence in 32 cities and is planning to hit 100 cities by Diwali and have over 300 stores by the end of the year. According to industry sources, Hero MotoCorp led by Pawan Munjal may not use the Hero brand name to sell electric or any green vehicles due to a non-compete family agreement with Hero Electric led by Naveen Munjal. On the company's plan to raise more funds, Mehta said, "While we are looking at gross positive margins, the company continues to spend cash right now and it will be a while before we become profitable. ", Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. It has set up a new manufacturing unit with a capacity to produce 1.1 lakh scooters annually and 1.2 lakh battery packs per annum. They have been fantastic supporters," he said. Although the final stake will only be known after Ather's Series E Funding round where it's looking to raise approximately Rs 1,000 crore. According to a BSE filing, with this latest investment, Hero MotoCorps share in Ather Energy has increased to 34.58%. It also plans to come up with new products to rival Ola Electric's S1 and S1 Pro in near future. Bengaluru-based Ather Energy is an Indian electric vehicle company founded by IIT graduates Tarun Mehta and Swapnil Jain in 2013. We are super excited to have NIIF come on board as an investor. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Developed by hedge funds, global asset management companies, experienced wealth management firms and portfolio managers. More articles from Rakesh Ranjan. Obviously, we are not profitable, these are not actual EBIDTA profitable but this puts you on a great path that now with increasing sales," Ather Energy CEO and Co-founder Tarun Mehta told PTI. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We should hit 1 million capacity only sometime next year.. Pawan Munjal-led HeroMoto Corp (HMCL) on Tuesday said it has increased its stake in electric scooter start-up Ather Energy to 35.10 per cent. 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In February this year, the company had announced an investment of Rs 635 crore over the next five years. Everybody looking for China Plus One options, says Godi India CEO. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Hero MotoCorp is one of the first investors Ather Energy roped in before it entered the EV race in India. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Ather is likely to announce new dealer partners in the coming few weeks. It sells electric scooters 450X and 450 Plus in the country. At the time of the announcement, Hero MotoCorp's share in Ather Energy stood at 34.8 per cent. Explore from India`s leading investment managers and advisors curating their strategies as smallcases. According to sources, Hero MotoCorp is in touch with Ather and is likely to participate in future fundraising rounds as well. As Hero MotoCorp, gears up to launch its first EV in March, this additional investment in Ather is a part of its three-pronged EV strategy. It is also considering to retail Ather's scooters in its outlets, along with looking at other collaborations to expand its domestic EV footprint. India's largest two-wheeler manufacturer Hero MotoCorp has decided to raise its stake in EV startup Ather Energy, which produces electric scooters in the country. Track your portfolio 24X7. This is not the first time Hero MotoCorp has invested in Ather Energy. However, Mehta said that Ather would welcome more investments from Hero and did not rule out closer synergies and long term collaboration in the future. "The next funding round of Ather has now been completed and simultaneous with the completion of this round, the CCDs issued to the company have been converted into compulsorily convertible preference shares (CCPS)," it said in the exchange filing.
Last year, Ather Energy had raised $51 million (~3.79 billion) with Flipkarts co-founder Sachin Bansal bringing in $32 million (~2.38 billion). Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. HeroMoto Corp, India's largest two-wheeler manufacturer, had invested Rs 130 crore to acquire 66,320 Compulsorily Convertible Debentures (CCDs) of Ather in July 25, 2018. We were one of the early investors in Ather Energy and have continued to expand our association over the years. Mehta says that the company is already generating revenues of over Rs 100 crore a month and hopes to double the number in FY23. Ather Energy unveils first Made in India smart electric scooter, We tell your stories. Learn and stay informed about cryptocurrency in India. Apart from Hero Moto Corp, Ather has raised funds from Flipkart founders Sachin Bansal and Binny Bansal and US hedge fund titan Tiger Global. Explained: Will O-RAN disrupt the way 5G networks roll out in India? However, the company is yet to revert CNBC TV 18's queries. Topics It is set to go up after fresh investments. Copyright HT Media Limited Hero MotoCorp Q4 profit falls 28%; revenue drops 14% to Rs 7,422 cr, TMS Ep163: Indian unicorns, real estate recovery, US Fed Policy, spam bot, Hero MotoCorp to ride high on volumes and low valuation, say analysts, India will have over 250 unicorns by 2025, says Iron Pillar report, Access Exclusive content - articles, features & opinion pieces, Weekly Industry/Genre specific newsletters - Choose multiple industries/genres, Access to 17 plus years of content archives, Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box, End of day news alerts on 5 companies (via email). The companys founder Tarun Mehta said that he is focused on expanding Athers presence in 8 more cities by the end of FY21. Mehta says they will support suppliers so that they can ramp up production to 60,000- 70,000 a month . On January 14, Hero Moto Corp had announced an investment of up to Rs 420 crore in Ather Energy. While the move does not put Ather in the unicorn club, it definitely brings it within striking distance. Hero MotoCorp-backed electric two-wheeler maker Ather Energy is hoping to be profitable at the operating level by next year and it looks to raise capital to fund its future business expansion programme, according to a top company official. We are excited to see the growth of Ather Energy in recent years.". They have recently been at the forefront of the countrys green transition through their investments and initiatives, and we look forward to our association.. The new age digital currency to diversify a portfolio. Hero MotoCorp's stake in electric two-wheeler maker, Ather Energy is likely to go up by 1-3 % as a result of the company's further investment in the EV maker, reported CNBC TV 18. 1 Crore, Ford workers in Chennai face uncertain future after last EcoSport SUV roll out. His projection is that if the shortage of chips does not worsen, the industry should be able to hit 100,000 scooters a month by the end of the year from around 40,000-50,000 at present. Ather Energy|fundings|NIIF, Surajeet Das Gupta Commenting on the investment from NIIF, Mehta said, "The switch to electric is inevitable and FY22 was the turning point for electric two-wheeler adoption in India. Full list inside, Watch: In China, railway workers adopt a 'cool' way to prevent tracks from overheating, Watch: NASA zooms in on Neil Armstrong's footprints 50 years after he walked on Moon, Errol Musk says hes been asked to donate sperm to create new generation of Elons. 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As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Pre-configured baskets of stocks & ETFs that you can invest in with a single click. The 400,000 square feet factory would be located at Hosur. Nonetheless, the news of the investmentdid good for Hero's share price, as it surged 5% early trade, on January 17. Ather Energy is an electric scooter manufacturer, Policy Tweaks Necessary to Achieve Indias Solar Target of 280 GW by 2030, Haryana to Procure 150 MW of Renewable Power with Assured Peak Power Supply, Europes Battery Cell Production Capacity to Increase to 1.5 TWh by 2030, Teslas Revenue Up by 42% YoY to $16.93 Billion in Q2 2022, UK Announces $4 Million Grant to Place Solar Panels in Space, Storage Key to Unlocking Full Potential of Solar and Wind Energy Sources. Mehta says that the company has already crossed the run rate of Rs 100 crore and is expecting to double it for this financial year. Hero MotoCorp to invest another 420 crore in Ather Energy. "The amount of work over the last one/one-and-half years and with sales growing now has finally gotten us to space where we have positive gross margin for every vehicle sold. HMCL intends to enhance its participation in the EV space by partnering with Ather in addition to pursuing its internal EV program," said Hero MotoCorp in an exchange filing. Padmanabh Sinha, executive director & chief investment officer Growth Equity of NIIF says, Aligned to Indias green transition mission, the two-wheeler electric vehicles industry is expected to grow significantly in the coming years. Prior to the proposed investment, Hero MotoCorp's shareholding in Ather Energy was 34.8% (on a fully diluted basis). Last November, Ather Energy had raised $35 million in a funding round led by Flipkart co-founder Sachin Bansal's investment of $23 million, while Hero MotoCorp had invested $12 million as a part of the Series D round. Stories that inspire change, By signing up for YourStory, you agree to the, Search for what you want, categories, tags, keywords, authors, events, anything under YourStory, By signing up for yourstory you agree to the. Earlier this year, Ather Energy had confirmed deliveries and presence across 27 cities in 15 states, including Bangalore, Chennai, Mumbai, Pune, Delhi, Hyderabad, and Kolkata, and is likely to expand to 40 cities by the end of 2021. Hero MotoCorp is an early investor in Ather Energy and has been part of its growth story since 2016. With a stake of 34.6 percent, Hero MotoCorp is already the largest shareholder in Ather. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited. Through its investments and partnerships with external partners like Ather Energy and Gogoro Inc, Hero MotoCorp is also working towards building the entire EV ecosystem from products to technology, to sales, service, customer care, operations, and innovation, the company noted. Post the investment, Hero's shareholding is likely to increase by 1-3%, sources have told CNBC TV 18. This reflects our confidence in the progress that Ather has made over the past few years. Copyright e-Eighteen.com Ltd. All rights reserved. Last Updated at May 12, 2022 15:00 IST. Rakesh Ranjan is a staff reporter at Mercom India. The company has also partnered withWith Taiwan's Gogoro on battery swapping & EV scooters. However, it will not be for building a motorcycle yet. MC30 is a curated basket of 30 investment-worthy mutual Fund (MF) schemes. We believe in free, fair and credible journalism. This is primarily due to the persisting and worsening shortage of components and crucial chips after the Russia-Ukraine war which might continue till 2023. All Rights Reserved. Hero MotoCorp has not ruled out the possibility of taking majority control and greater synergies with Ather. You have been successfully registered for our daily newsletter. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Visit this section to access live price and charts. Ather Energy, Indias leading electric two-wheeler company, raised $ 128 million on Thursday in a Series E round of funding led by the National Investment and Infrastructure Funds (NIIF) Strategic Opportunities Fund (SOF) and Hero MotoCorp, a significant shareholder in Ather, which has again invested and continues to hold its stake at 35 per cent after the fresh infusion, apart from other investors. "That's what integration is going to give us as a company an advantage. And the order book for Ather Energys flagship product, the Ather 450X, is growing at 25 per cent quarter-on-quarter. Ather Energy was founded in 2013 by IIT Madras alumni, Tarun Mehta, and Swapnil Jain. The company has decided to infuse another 420-crore investment in the Hosur-based electric vehicle manufacturer. Hero MotoCorp made the announcement on Friday, saying the investment will be made in two phases. How sustainable are Indian unicorns' business models? When asked by when the company expects to be EBIDTA profitable, he said, "we will be bridging this gap and hopefully, EBIDTA profitability is something that's in the near futurenext year we are hoping for". Ather will remain independent and there are no plans for Hero to take majority control," said Mehta. "As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer and the industry. 2022 by Mercom Capital Group, LLC. Workers at Ather Energy's factory at Hosur, Tamil Nadu testing scooters. As for Hero MotoCorp, he said, "They have been supporting us in back to back rounds and I certainly expect them to remain extremely bullish on us". Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. Get stories of change makers and innovators from the startup ecosystem in your inbox. or medium without express writtern permission of moneycontrol.com is prohibited. According to CNBC TV18, Hero is not looking at a controlling stake in Ather Energy. We will raise more cash in the coming time". Support quality journalism and subscribe to Business Standard. This is SOFs fourth investment after its investments in two infrastructure financing NBFCs (Aseem Infrastructure Finance and NIIF IFL) and a national healthcare chain (Manipal Hospitals). The company says that its monthly sales in April 2022 hit 3,779 units. Industry sources told CNBC-TV18 that Hero MotoCorp is considering assuming a majority stake and also the possibility of selling Ather scooters at Hero dealerships across the country. The founder elaborates that the money will also be used to build two more platforms of scooters apart from the single platform on which it works now. Copyright e-Eighteen.com Ltd All rights resderved. Hero MotoCorp is gearing up to unveil its first electric vehicle in March this year. Our aim is to provide accessible electric mobility to customers across the globe. Copyrights 2022 Business Standard Private Ltd. All rights reserved. Team Business Standard, The funds will be used by Ather Energy to expand manufacturing facilities, invest in research and development, charging infrastructure, and grow its retail network, upGrad acquires edtech platform 'Harappa Education' for Rs 300 cr, Star Air to expand regional connectivity, adds 2 Embraer E175 aircrafts, Akasa Air to operate its 1st commercial flight on Aug 7; opens ticket sales, Online retail may hit Rs 4.9-trillion GMV this year: RedSeer report, Facing unfair competition from global tech giants, says domestic players, Apple's vendors create 30,000 new jobs under PLI scheme in India, Dedicated CCI regulatory wing to keep check on apps in the offing, 43% of India Inc's foreign exchange revenue comes to IT companies. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". As already stated, our internal program on Electric Vehicles (EVs) is also progressing well," a Hero MotoCorp spokesperson said in response to CNBC-TV18's query. Hero MotoCorp, a leading manufacturer of motorcycles and scooters, has announced that it has invested 840 million (~$11.25 million) in Ather Energy. Sustainability and clean, green environment remain central to our vision to be the future of mobility.. The companys plans to expand capacity and touchpoints have been delayed by 3-4 months due to the COVID-19 pandemic. Hero MotoCorp, which currently holds a 35 percent stake in Bengaluru-based electric vehicle startup Ather Energy, could soon assume majority control of the company. Reproduction of news articles, photos, videos or any other content in whole or in part in any form As and when that happens, then we can respin the product across different price points, very comfortably.". Ather previously said that it had plans to expand its products and services to 30 more cities over the next few years. "The shareholding of the Company in Ather has increased to 35.10% (31.27% on a fully diluted basis) from 32.31% (29.94% on a fully diluted basis)," HeroMoto Corp said in a filing to the Bombay Stock Exchange. However, the exact share will only be known after completion of the capital raising round by Ather.
Digital Editor. Kindly visit the Manage my subscription page to discover the benefits of this programme. On whether Ather Energy will rope in new investors, or will it depend on existing investors for future funding, he said it would depend on a lot of factors but "where Ather is, where the business is, I think very likely the next round investors" could include external ones also. Established in 2013, Ather Energy has been manufacturing and selling electric scooters in Bengaluru and recently entered the Chennai market. In April, registration of electric scooters was slightly in the negative over March. We, however, have a request. The cash will also help the company support its 100 odd suppliers who provide it with customised components as they have built the scooter from scratch. In addition to our efforts to develop a robust external eco-system for EVs, we are also aggressively working on our internal EV program. With New Investment of 840 Million, Heros Share in Ather Energy Rises to 34.58%. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. We see immense potential for them to expand their market even further, especially given the likely growth of electric vehicles (EVs) in the near future. It had made a commitment to invest Rs 205 crore in the smart electric two-wheeler start-up in 2016.