Ola Electric rival Ather Energy raises Rs 286 crore; co-founders invests Rs 86 crore: Report

Bengaluru-based electric vehicles maker Ather Energy, which primarily competes with Bhavish Aggarwal-led Ola Electric, has reportedly raised Rs 286 crore or about $34 million through a mix of debt and equity, primarily through venture debt and contributions from co-founders.

According to an Entrackr report, which first reported the development, A New Delhi-based venture debt firm Stride Ventures invested close to Rs 200 crore via debentures, while the company's co-founders, Tarun Sanjay Mehta and Swapnil Jain, each contributed Rs 43.28 crore via Series F preference shares.

The report further stated that the Bengaluru-based EV maker could use the raised funds for new product launches, expansion of its charging infrastructure, and retail dealership network.

Nikhil Kamath's investment in Ather Energy

The report comes more than a month after Sachin Bansal, co-founder of Flipkart and an early investor in Ather Energy, sold a large portion of his shares to Nikhil Kamath, co-founder of Zerodha.

"Among my private equity investments, this will be among the largest bets that I have made... I truly believe in the product, and I am looking to have a good amount of exposure to Ather for the next decade," Kamath told the Financial Daily.

Hero MotoCorp, GIC's investment 

In September last year, Ather Energy raised Rs 900 crore in funding via a rights issue from its existing investor, Hero MotoCorp, and Singapore-based GIC. Ather then said it would use the capital to launch new products and expand its charging and retail network.

Two months later, in mid-December 2023, Indian two-wheeler giant Hero MotoCorp said it will acquire an additional stake in the Bengaluru-based EV maker for Rs 140 crore. The investment increased Hero MotoCorp's stake from 36.7% to 39.7%. 

Ather Energy IPO

It's worth noting that all these developments in Ather Energy are happening as it prepares to launch its IPO. Earlier in March this year, a Bloomberg report stated that the EV maker selected global banking powerhouses HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. to spearhead its upcoming initial public offering (IPO).

The report also mentioned that Ola Electric's rival has brought on board Indian financial institutions JM Financial Ltd and Axis Bank Ltd to navigate its market debut, aiming for a valuation of around $2 billion.

In December last year, CNBC-TV18 reported that Ather Energy aims to list on Dalal Street by Diwali this year or early 2025.

The company reported a consolidated operating revenue of Rs 1,784 crore, up nearly 337% for the financial year 2023, even as its losses mounted nearly 150% to Rs 864 crore.