Hero MotoCorp, a prominent two-wheeler manufacturer, has announced its plan to invest a substantial amount of Rs 550 crore in Ather Eembarking on its initial public offering (IPO) journey. Reports suggest that the electric vehicle (EV) manufacturer is contemplating an IPO, possibly by 2024.
Tarun Mehta, the co-founder and CEO of Ather Energy, emphasized the importance of profitability as a prerequisite for considering an IPO. He stated that profitability and favorable market conditions are essential factors in their IPO plans. While the company has seen robust sales and growing demand, they remain focused on achieving profitability in their operations.
In October 2022, Ather Energy successfully raised $50 million in equity funding, led by its existing investor Caladium Investment Pte Ltd, with participation from Herald Square Ventures, backed by Navam Capital.
During its last funding round in October, Ather Energy was valued at $700 million. The company had been actively seeking additional funding that would potentially elevate its status to that of a unicorn in the EV industry.
Established in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is known for its electric scooters, including the Ather 450X, Ather 450 Plus, and Ather 450S. The company operates a manufacturing facility in Hosur, Tamil Nadu, and recently inaugurated a second facility in the same district. Ather Energy is on a growth trajectory, with plans to increase its production capacity from the current 4.2 lakh units per annum to nearly 15 lakh units per annum.
In terms of sales performance, Ather Energy recorded approximately 6,835 units sold, reflecting a 2% increase compared to the previous month. The company's strategic vision includes doubling its market share to reach approximately 30-40% over the coming years, facilitated by the launch of its cost-effective 450S scooter in the 125cc category.
This investment by Hero MotoCorp underscores the growing interest and confidence in the electric vehicle sector in India and signifies a strategic move in support of Ather Energy's expansion plans and potential IPO.nergy, a leading electric two-wheeler company in which Hero MotoCorp is already an investor. This decision was made during a board meeting held on September 4, 2023, as confirmed in a filing with the National Stock Exchange (NSE).
Ather Energy has been in the spotlight recently as it sought to secure funding before
