Hero MotoCorp to buy additional stake in Ola Electric rival Ather Energy for Rs 140 crore

Indian two-wheeler giant Hero MotoCorp recently said it will be acquiring an additional stake in Ather Energy, which battles with EV giant Ola Electric in the premium segment, for Rs 140 crore. 

According to the company's statement, the acquisition will increase Hero MotoCorp's stake in Ather from the current 36.7% to 39.7%. The acquisition is made from existing shareholders, though the company didn't reveal the identity of specific sellers.

Hero MotoCorp's investment in Ather Energy 

Hero MotoCorp has been one of the earlier investors in the company. Earlier in September this year, Ather Energy raised Rs 900 crore in funding from its existing investor Hero MotoCorp and Singapore-based GIC via a rights issue.

“There was strong support for the rights issue, and we are very happy to see the confidence exhibited by shareholders. The last few years have demonstrated just how quick the EV transition in India can be and how it will be led by 2-wheelers," Tarun Mehta, CEO and co-founder of Ather Energy earlier said.

Ather Energy's Business 

Ather Energy, which is engaged in designing, manufacturing, and servicing electric two-wheelers, has shown significant growth. The company, which also manages its own charging infrastructure, reported a turnover of Rs 1806.1 crore for the year ended March 2023. 

In October 2023, Ather Energy announced its first international expansion into Nepal. The startup had partnered with Vaidya Energy to introduce its flagship electric scooter, the 450X, in Nepal. The startup also announced plans to open its Experience Centre in Kathmandu this November, marking its first retail expansion outside India.

HeroMotocorp's association with Ather Energy 

Hero MotoCorp and Ather have collaborated on creating an interoperable fast-charging network across India. The network is expected to cover 100 cities with over 1,900 charging points. While Ola Electric is about to file its IPO papers this month, a report from ET revealed that Ather is also preparing for an IPO, potentially by Diwali 2024 or early 2025.

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