Sachin Bansal, one of the early investors in Ather Energy, has exited the company by selling his remaining stake to Hero MotoCorp and Zerodha co-founder Nikhil Kamath. Bansal sold a 2.2% stake to Hero MotoCorp for Rs 124 crore, while the remaining shares were acquired by Kamath. This exit marks the end of Bansal’s significant involvement with Ather, where he had invested around Rs 400 crore since 2014.
ET had first reported on April 23 that Bansal was in talks to sell his stake and exit Ather. Previously, he had sold part of his stake to Kamath, who continues to increase his holdings in the electric scooter company. Binny Bansal, Flipkart co-founder, also remains an investor in Ather with a 1% stake.
Hero MotoCorp’s purchase of the latest stake inferred a valuation of Rs 5,636 crore for Ather Energy, a premium compared to the Rs 4,666 crore valuation when Hero MotoCorp invested Rs 140 crore in Ather last December. The remaining 5% stake sold to Kamath is valued at approximately Rs 282 crore at the latest inferred valuation.
Hero MotoCorp, which was already the largest shareholder in Ather, now holds about 40% of the total shareholding in the company. The two-wheeler giant disclosed this additional share purchase in a regulatory filing with the BSE, though it did not name the investor from whom the shares were acquired.
Hero MotoCorp’s filing also pegged Ather’s turnover for fiscal 2024 at Rs 1,753 crore, slightly lower than the Rs 1,784 crore operating revenue reported for FY23. However, no profit or loss figures were disclosed. In FY23, Ather posted a net loss of Rs 864 crore.
The latest investment follows a recent capital raise of Rs 286 crore ($34 million) by Ather from its founders and Stride Ventures through a mix of debt and equity funding. Ather is also finalizing plans to raise an additional $75-90 million (approximately Rs 750 crore) in primary funding from new and existing investors. This funding round, likely led by an existing investor, could value the company between $850 million and $1 billion.
This new fundraising comes after Ather postponed funding plans last year due to unfavorable market conditions, instead raising Rs 900 crore in September 2023 from Hero MotoCorp and GIC through a rights issue. Ather competes with major players like Ola Electric, TVS, and Bajaj in the electric scooter market.
In a strategic move on April 6, Ather launched a new range of ‘Rizta’ scooters aimed at the family segment. The company, which has an annual production capacity of 450,000 scooters, plans to increase its output from 150,000 vehicles a year following the launch of Rizta.
