Hero MotoCorp has approved an additional investment of ₹124 crore (approximately $15 million) to acquire a further 2.2% stake in electric scooter manufacturer Ather Energy. This marks Hero MotoCorp’s third investment in the Bengaluru-based company over the last nine months.
In December, Hero MotoCorp increased its stake in Ather Energy by 3% for ₹140 crore ($16.8 million). With this latest infusion, Hero MotoCorp now holds nearly 42% of the company led by Tarun Mehta.
This development follows Ather Energy’s recent $34.5 million debt and equity fundraising, in which co-founders Mehta and Swapnil Jain collectively invested over $10 million.
Ather Energy was valued at $750 million during its Series E round in May 2022, though the company has not disclosed its valuation since then. According to startup data intelligence platform TheKredible, Sachin Bansal is the second-largest investor in Ather after Hero MotoCorp, with other notable stakeholders including Caladium Investment and Tiger Global.
For FY23, Ather Energy’s revenue from operations surged 4.36X to ₹1,784 crore, while its losses expanded 2.5X to ₹864.5 crore during the same period. The company has yet to file its financial results for FY24.
Electric two-wheeler sales saw a significant increase in May following a 50% drop in April. According to Vahan data, Ather Energy captured a market share of 9.45%, selling 6,024 units last month. Ola Electric led the market with 37,191 units sold, followed by TVS with 11,737 units and Bajaj with 9,189 units.
Hero MotoCorp’s continued investment underscores its commitment to the electric mobility sector and strengthens its strategic position within Ather Energy as the market for electric two-wheelers continues to expand.
