Ather Energy raises INR 286 crore from founders and Stride Ventures
Ather Energy, a manufacturer of electric scooters, has raised a total of INR 286 crore (about USD 34 million) in debt and equity financing from its founders and Stride Ventures.
According to paperwork that Ather submitted with the Registrar of Companies, debt fund Stride Ventures invested INR 200 crore through series C3 debentures, while cofounders Tarun Mehta and Swapnil Jain contributed INR 86 crore through series F compulsorily convertible preference shares in the company.
Ather is finalizing plans to collect USD 75–90 million (about INR 750 crore) in initial capital from new and existing investors, according to a report published by ET on April 23. An existing investor is expected to lead the funding round, which may value the company between USD 850 million and USD 1 billion.
Simultaneously, Flipkart cofounder Sachin Bansal, who was among the initial investors in the company, sold a substantial portion of his shares to Nikhil Kamath, the cofounder of Zerodha, and expressed interest in liquidating the remaining portion of his ownership in the business.
According to Tracxn data, Bansal owned 10.7% of the company after investing close to INR 400 crore since 2014. Binny Bansal, a co-founder of Flipkart, owns a 1% share in the business as an investor.
Ather Energy is seeking new capital after delaying its funding plans due to unfavourable market conditions last year. Rather, it used a rights offering to raise INR 900 crore from Hero MotoCorp and GIC in September 2023. Hero MotoCorp invested another INR 140 crore in December, bringing its holding to 39.7%. When Ather Energy raised money in December, it did not say who sold shares.
Tiger Global and the National Investment and Infrastructure Fund are among its other investors. In the electric scooter market, Ather faces competition from companies like Ola Electric, TVS, and Bajaj.
In FY23, Ather’s operating revenue increased by more than four times to INR 1,784 crore, but its net loss also increased by more than two times to INR 864.5 crore.
A new line of “Rizta” scooters from Ather Energy was introduced on April 6 with an emphasis on the family market. After the Rizta goes on sale, the company, which can produce 450,000 scooters annually, said it will increase production from the 150,000 cars it now produces annually.
Content Credit: ET Auto
