Copyright HT Media Limited The company has decided to infuse another 420-crore investment in the Hosur-based electric vehicle manufacturer. We will raise more cash in the coming time". 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. Hero MotoCorp first invested in Ather in 2016. Hero MotoCorp is one of the first investors Ather Energy roped in before it entered the EV race in India. 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. 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. Since 2016, Hero MotoCorp has been backing the EV startup and now is exploring collaborations with Ather Energy in charging infrastructure, technology and sourcing. The two-wheeler major's board had approved the investment in one or more tranches. 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. Meanwhile, HeroMoto Corp shares closed trade at Rs 2,749.95 apiece, up 2.55 per cent, on the Bombay Stock Exchange. Speaking on this latest round of investment, Rajat Bhargava, Head of Emerging Mobility Business Unit (EMBU), Global Business and Strategy at Hero MotoCorp, said, We are excited to see the growth of Ather Energy in the recent years. Copyrights 2022 Business Standard Private Ltd. All rights reserved. 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 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. The company says that its monthly sales in April 2022 hit 3,779 units. 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. Bengaluru-based Ather Energy is an Indian electric vehicle company founded by IIT graduates Tarun Mehta and Swapnil Jain in 2013.

We are excited to see the growth of Ather Energy in recent years.". Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. 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. ", 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. In addition to our efforts to develop a robust external eco-system for EVs, we are also aggressively working on our internal EV program. Hero has been developing its own electric scooter but the company has not announced any plans to launch it as yet. Hero MotoCorp to invest another 420 crore in Ather Energy. Established in 2013, Ather Energy has been manufacturing and selling electric scooters in Bengaluru and recently entered the Chennai market. The company is backed by founders of Flipkart, Tiger Global, Hero Motocorp, among others. 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. Sustainability and clean, green environment remain central to our vision to be the future of mobility.. 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. What we are building from a technology, brand, marketing and supply chain perspectives is very different. 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. While the move does not put Ather in the unicorn club, it definitely brings it within striking distance. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. 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. 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. "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. 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. Hero MotoCorp, a leading manufacturer of motorcycles and scooters, has announced that it has invested 840 million (~$11.25 million) in Ather Energy. 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. We were one of the early investors in Ather Energy and have continued to expand our association over the years. With New Investment of 840 Million, Heros Share in Ather Energy Rises to 34.58%. Fundamental, Stock Ideas, Multibaggers & Insights, Stock & Index F&O Trading Calls & Market Analysis, Commodity Trading Calls & Market Analysis, Currency Derivatives Trading Calls & Insights, Options Trading Advice and Market Analysis, Model portfolios, Investment Ideas, Guru Screens and Much More, Proprietary system driven Rule Based Trading calls, Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas, Details stock report and investment recommendation. 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. In July, the company announced a further investment of Rs 84 crore in the startup, taking its stake from 31 percent to 35 percent. 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 also plans to come up with new products to rival Ola Electric's S1 and S1 Pro in near future. "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. 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). 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. 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). Your support through more subscriptions can help us practise the journalism to which we are committed. 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". 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. According to Haitong, the companys market share was 6.9 per cent in February behind Hero Electric, Ampere Vehicles, Okinawa and Ola Electric in sales. Hero MotoCorp is an early investor in Ather Energy and has been part of its growth story since 2016. Last year, Ather Energy had raised $51 million (~3.79 billion) with Flipkarts co-founder Sachin Bansal bringing in $32 million (~2.38 billion). Track your portfolio 24X7. They have recently been at the forefront of the countrys green transition through their investments and initiatives, and we look forward to our association.. They have been fantastic supporters," he said. Hero MotoCorp has not ruled out the possibility of taking majority control and greater synergies with Ather. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". Copyright e-Eighteen.com Ltd. All rights reserved. We, however, have a request. Support quality journalism and subscribe to Business Standard. Developed by hedge funds, global asset management companies, experienced wealth management firms and portfolio managers. Copyright e-Eighteen.com Ltd All rights resderved. And the order book for Ather Energys flagship product, the Ather 450X, is growing at 25 per cent quarter-on-quarter. It is also considering to retail Ather's scooters in its outlets, along with looking at other collaborations to expand its domestic EV footprint. Visit this section to access live price and charts. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. 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". 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. According to sources, Hero MotoCorp is in touch with Ather and is likely to participate in future fundraising rounds as well. Hero MotoCorp made the announcement on Friday, saying the investment will be made in two phases.

Explained: Will O-RAN disrupt the way 5G networks roll out in India? You have been successfully registered for our daily newsletter. In April, registration of electric scooters was slightly in the negative over March.

All rights reserved. For reprint rights: Syndications Today, HeroMoto Corp increases stake in electric scooter start-up Ather Energy to 35.10%, HeroMoto Corp had invested Rs 130 crore in Ather Energy in July 25, 2018, Reliance Capital exercises 'green-shoe' option to sell 8% stake in RNAM for Rs 1,100 crore, PNB net loss narrows to Rs 9,975.49 crore in FY19 on lower provisions; asset quality improves. Mehta says that the company is already generating revenues of over Rs 100 crore a month and hopes to double the number in FY23. However, it will not be for building a motorcycle yet. Hero MotoCorp intends to enhance its participation in the EV space by partnering with Ather in addition to pursuing its internal EV program," the auto major said. Discover 5000+ schemes. Post the investment, Hero's shareholding is likely to increase by 1-3%, sources have told CNBC TV 18. Ather Energy has indigenously designed and developed superior, well-tested products with a high degree of domestic sourcing of components and adaptability to Indian conditions. Hero MotoCorp has not ruled out the possibility of taking majority control. It manufactures two electric scooter models, the Ather 340 and Ather 450. It sells electric scooters 450X and 450 Plus in the country. The company is aiming to have one dealer in at least 20 cities by 2022. It is set to go up after fresh investments. Rakesh holds a Bachelors degree in English from Indira Gandhi National Open University (IGNOU). Before this latest round of investment, Hero MotoCorps shareholding in the electric scooter manufacturer was 31.27%. 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. Everybody looking for China Plus One options, says Godi India CEO. The 400,000 square feet factory would be located at Hosur. 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. However, the company is yet to revert CNBC TV 18's queries. 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. 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. Enjoy Reading!

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. Topics The companys plans to expand capacity and touchpoints have been delayed by 3-4 months due to the COVID-19 pandemic. Ather will remain independent and there are no plans for Hero to take majority control," said Mehta. Currently, Ather Energy is one of the top electric two-wheeler manufacturers in India. Prior to the proposed investment, Hero MotoCorp's shareholding in Ather Energy was 34.8% (on a fully diluted basis). Ather previously said that it had plans to expand its products and services to 30 more cities over the next few years. 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. 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. 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 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. 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. Pre-configured baskets of stocks & ETFs that you can invest in with a single click. Ather Energy|fundings|NIIF, Surajeet Das Gupta 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. 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. 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. At the time of the announcement, Hero MotoCorp's share in Ather Energy stood at 34.8 per cent. Reproduction of news articles, photos, videos or any other content in whole or in part in any form 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. 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. Hero MotoCorp had used its convertible debt of $19 million (~1.41 billion) for the round. According to a BSE filing, with this latest investment, Hero MotoCorps share in Ather Energy has increased to 34.58%. MC30 is a curated basket of 30 investment-worthy mutual Fund (MF) schemes. Diversify your portfolio by investing in Global brands. ->->MC_ENG_DESKTOP/MC_ENG_NEWS/MC_ENG_NEWS_AS/MC_ENG_ROS_NWS_AS_ATF_728, Nifty Auto hits record high ahead of June quarter earnings, Hot Stocks | Here's why you should bet on Shriram Transport, Hero MotoCorp in short term, Tribunal allows Hero MotoCorp to use 'Hero' trademark for its EVs, Invest in Stacks (Expert curated portfolio using, Unlocking opportunities in Metal and Mining, PhonePe Beat of Progress Powered by Moneycontrol, Option Omega 3.0 Retail Option Virtual Online Conference at 8pm, Hero Moto Corp had announced an investment of up to Rs 420 crore, did good for Hero's share price, as it surged 5%, Ather had announced its price hike for its electric scooters, Viral video: News segment on UK heatwave is eerily similar to 'Don't Look Up' scene, Indians now get visa-free access to 60 countries.

Mehta says they will support suppliers so that they can ramp up production to 60,000- 70,000 a month .

The company is also exploring collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing. 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The companys founder Tarun Mehta said that he is focused on expanding Athers presence in 8 more cities by the end of FY21. "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. 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. Nonetheless, the news of the investmentdid good for Hero's share price, as it surged 5% early trade, on January 17. This is not the first time Hero MotoCorp has invested in Ather Energy. Ather is likely to announce new dealer partners in the coming few weeks. It had made a commitment to invest Rs 205 crore in the smart electric two-wheeler start-up in 2016. Apart from Hero Moto Corp, Ather has raised funds from Flipkart founders Sachin Bansal and Binny Bansal and US hedge fund titan Tiger Global. How sustainable are Indian unicorns' business models? The funds will be utilized to expand Ather's pan India sales footprint. Digital Editor. Explore from India`s leading investment managers and advisors curating their strategies as smallcases. "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. 1 Crore, Ford workers in Chennai face uncertain future after last EcoSport SUV roll out. Ather Energy was one of the earliest start-up investments of Sachin Bansal when he invested $500,000 (~37.23 million) in the firm as an angel investor in 2014. The funds will be used by Ather Energy to expand manufacturing facilities, invest in research and development, charging infrastructure, and grow its retail network. 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. 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. 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. 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. In February this year, the company had announced an investment of Rs 635 crore over the next five years. Kindly visit the Manage my subscription page to discover the benefits of this programme. Ather Energy was founded in 2013 by IIT Madras alumni, Tarun Mehta, and Swapnil Jain. More articles from Rakesh Ranjan. 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. 2022 by Mercom Capital Group, LLC. The company has also partnered withWith Taiwan's Gogoro on battery swapping & EV scooters. Learn, discover & invest in smallcases across different types to build your long term portfolio. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. We believe in free, fair and credible journalism. Prior to the proposed investment, HMCL's shareholding in Ather was 32.31 per cent. According to CNBC TV18, Hero is not looking at a controlling stake in Ather Energy. As and when that happens, then we can respin the product across different price points, very comfortably.". Get stories of change makers and innovators from the startup ecosystem in your inbox. We are super excited to have NIIF come on board as an investor. 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. Workers at Ather Energy's factory at Hosur, Tamil Nadu testing scooters.

Last Updated at May 12, 2022 15:00 IST. Ather Energy is currently in talks to raise more funds mainly for setting up the new production plant, expanding presence across the country and marketing of the new 450X. Learn and stay informed about cryptocurrency in India. Our aim is to provide accessible electric mobility to customers across the globe. "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. or medium without express writtern permission of moneycontrol.com is prohibited. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. The company is looking to use its '450 platform' to spin more variants and also enter the mass market electric two-wheeler segment. 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". Ather Energy unveils first Made in India smart electric scooter, We tell your stories. And of course the spate of electric two-wheeler fires which has forced manufacturers to recall over 6,000 of them, leading to consumer concerns. The new age digital currency to diversify a portfolio. 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.