India’s largest two-wheeler manufacturer Hero MotoCorp on Friday said it’s invested Rs 84 crore within the Bengaluru- based seven-year-old electric two-wheeler start-up Ather Energy. With this Hero has increased its stake in Ather Energy to 34.58 per cent.
Hero MotoCorp has been a neighbourhood of Ather’s growth story since 2016 when it first invested in it as a part of Series B funding. before the investment, Pawan Munjal’s company had a shareholding of 31.27 per cent in Ather Energy.
his was an extension of Ather’s series C round of funding that was led by Flipkart founder Sachin Bansal.
“We are during a high growth phase of our journey, and while a previous couple of months are challenging, we’ve not altered our expansion plans,” said Tarun Mehta, Co-founder & CEO, Ather Energy. “Our geographic expansion and therefore the roll-out schedule for the Ather 450X are on target, and that we are going to be using these funds to take a position in our facilities to satisfy the demand we’ve seen for the Ather 450X across the country. ”
After the launch of its flagship product the 450X a couple of months ago, Ather is now looking to proportion to twenty cities by the top of 2021. the corporate has said the 450X is going to be available in cities like Hyderabad, Pune, Delhi and Mumbai, with deliveries beginning in October 2020. Ather is opening a replacement manufacturing facility in Hosur, which is meant to supply 100,000 units annually, and is scalable to half 1,000,000 units and is additionally fixing Ather Grid fast-charging points across the country over subsequent five years, making public charging easy and accessible to all-electric vehicle owners.
For Hero MotoCorp, which doesn’t have an electrical offering of its title now, investments in companies like Ather is a component of the strategic decision taken by the corporate towards the longer term of mobility. In February this year, the corporate had said it’s earmarked an investment of Rs 10,000 crore ($1.4 billion) towards capacity expansion and to fund research and development in alternative mobility solutions over subsequent five-seven years. It had also said it had been hospitable more collaborations and partnerships going forward.
“We are excited to ascertain the expansion of Ather Energy in recent years. We see immense potential for them to expand their market even further, especially given the likely growth of electrical vehicles (EV) within the near future,” said Rajat Bhargava, Head of Emerging Mobility Business Unit (EMBU), Global Business & Strategy, Hero MotoCorp. “In addition to our efforts of developing a strong external ecosystem for EVs, we also are aggressively performing on our internal EV program. Our aim is to supply accessible electric mobility to customers across the world. Sustainability and a clean, green environment remain central to our vision to be the long term of mobility.”
Electric vehicle sales in India in 2019-20 stood at 1.56 lakh units as compared to 1.3 lakh units in 2018-19. Two-wheelers accounted for a huge majority of it at 1.52 lakh units.