Ather Energy, India’s first intelligent electric scooter manufacturer, has raised Rs 84 crore ($11 million) in a fresh investment by Hero MotoCorp, as an extension of its Series C round, led by Sachin Bansal, one of the angel investors for Ather.
Commenting on the investment, Tarun Mehta, co-founder and CEO, Ather Energy, said: “We are in a high growth phase of our journey, and while the last few months have been challenging, we have not altered our expansion plans. Our geographic expansion and the rollout schedule for the Ather 450X are on track, and we will be using these funds to invest in our facilities to meet the demand we have seen for the Ather 450X across the country. ”
Hero MotoCorp is India’s leading company and this funding has given a great deal for Ather Energy and it’s coming in the market as big auto has been aggressively investing into big mobility startups.
Hero MotoCorp has been a part of Ather’s growth story since 2016, when they first invested as a part of series B and it has become the largest investor for Ather by more than approx 34% stake. For Ather, the current funding will help its aggressive expansion phase on the back of its flagship product, the Ather 450X.
The Ather recently launched flagship scooter, the 450X has caught the attention of automobile and tech enthusiasts, and will soon be available in cities like Hyderabad, Pune, Delhi and Mumbai, with deliveries beginning in October 2020.
Bengaluru-based, Ather Energy has so far raised $95 million in five rounds of funding and has Hero MotoCorp, Tiger Global, and Flipkart founders Sachin and Binny Bansal as its investors.
The company currently has sales operations in Bengaluru and Chennai and recently announced its plan to enter 4 new cities by July this year. Further, it plans to have presence in 10 cities by end of this year, and will reach 24 by end of the next year.
Ather will also open a manufacturing facility at Hosur in Karnataka, designed to produce 100,000 units annually and scalable to half a million units.
This round is a reinstatement of confidence by existing investors in Ather’s potential and success. And it was a move for expansion of both current and new products to the existing and new markets.