Hero MotoCorp and Ather reached an agreement this week to raise Rs 550 million
Electric scooter maker Ather Energy has raised Rs 900 crore from existing investors Hero MotoCorp and GIC through a rights issue. Earlier this week, Ather reached an agreement to raise Rs 550 million from Hero MotoCorp.
According to a statement from Ather Energy, the funding will enable the company to expand its product portfolio and expand its presence in the market. An investment round of Rs 350 million has been launched by the Singapore-based sovereign wealth fund.
This is the second major funding round for the Bengaluru-based company, which raised $128 million in a Series E round last May. According to the reports coming out from various sources says that the company was valued at $750 million in a Series E round.
There is a new trick available for the company that will allow it to join the unicorn club. It is important to note, however, that the company chose to raise capital rather than raise equity through the sale of rights.
Ather is the third largest manufacturer of electric motorcycles by volume, with 6,835 units sold in August. Ola Electric is the number one player in this sector with a 29.31% market share, followed by TVS with sales of 14,584 units in August. Ather has also quadrupled its retail presence, growing from 30 stores to 130 last year. Currently, the company boasts more than 200 retail stores in more than 100 cities and has a fast-charging network for electric two-wheelers with more than 1,500 company-branded networks.
According to information obtained through NSE filings, Ather’s operating revenue increased 4.4 times to Rs 1,806.1 crore in fiscal year 23 from Rs 413.8 crore, while the company’s losses increased by 151, 2% to 864.5 crore Rs.
Ather’s closest competitor, Ola Electric, raised between $800 million and $900 million in equity and debt and is valued at more than $5 billion in its latest funding round. In terms of size, Ola Electric recorded operating revenue of Rs 373 crore in fiscal year 22 and a loss of Rs 784 crore. A recent Reuters report reported that Ola Electric has yet to file their audited financial statements for the fiscal year 2023, but the company has recorded a loss of $136 million (Rs 1,100 crore) during the 23rd year of sales during which the company collected $335 million (Rs 2,700 crore).
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