Two-wheeler industry leader Hero MotoCorp on September 4 announced getting board approval to infuse funds worth Rs 550 crore into one of its investee companies– Ather Energy, an electric two-wheeler maker.
“The Board of Directors of the Company at its meeting held on September 4, 2023, has approved an investment of up to INR 550 crore (Rupees five hundred fifty crores), in the Rights issue of Ather Energy Private Limited,” The NSE filing by Hero MotoCorp said.
The funding juxtaposed the timings when the EV maker was earnestly finding an investor before its IPO listing plans. A report by Moneycontrol suggests Ather Energy is discussing plans for an IPO by 2024.
“Profitability is key for us, and we will only then look at an IPO. The market condition should also be right, and we will have to turn profitable to think about that. Our sales numbers are great, demand is growing, and we are very bullish on the segment we operate in,” Tarun Mehta, co-founder and chief executive officer of Ather, said in an exclusive interaction with Moneycontrol in January.
In October last year, Ather Energy pulled in $50 million in equity funding with the help of its existing investor– Caladium Investment Pte Ltd, and participating partner Navam Capital-backed Herald Square Ventures. Media reports suggest Ather was valued at $700 million in its last fundraise in October and was looking to catch the possibility that could raise its valuation to that of a unicorn.
A 2013-born EV venture by Mehta and Swapnil Jain, Ather, rolls out these electric scooters – the Ather 450X, the Ather 450 Plus, and the Ather 450S. The Bengaluru-based company is looking to double up its market share to about 30-40 percent over the next few years by introducing the budget-friendly 450S scooter in the 125cc category.