In a filing with stock exchanges on Monday, Hero MotoCorp said its board has passed a resolution to invest the money in the rights issue of Ather Energy.
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The motorcycle maker already owns a 34.2% stake in Ather, according to data from Tracxn. In January last year, Hero MotoCorp partially led a $128 million fundraising by Ather.
Ather was last valued at $739 million during a $50 million fundraising in October last year, as per Tracxn. Media reports suggested that the firm was set to raise a further $250 million at a $1.3 billion valuation this year, but shelved the plan amid a broader tech funding winter and a hit to sales after the rollback of the government subsidy for electric vehicles in June.
In August, Ather sold 6,835 units, according to Vahan, the government portal for automobile registration. This is opposed to the sale of 12,184 units in March and 15,420 units in May this year, both while the subsidies were still valid. More than 59,000 electric two-wheelers were sold in August, with Ola Electric selling 17,389 units to remain the top player in the market.
On August 11, Ather launched an entry-level electric scooter model, 450S, with a 115 km range. Its other model, 450X, comes with either a 115-km range or a 145-km range. A few days later, rival Ola Electric launched a new scooter model, the Ola S1 X. Ola also said it plans to launch electric bikes in four variations by the end of 2024.
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According to the annual report of Hero Motocorp, Ather’s revenue from operations jumped over four times to Rs 1,806.1 crore in FY23. Its losses, however, widened by over 150% to Rs 864.5 crore.
