Ather Energy, a manufacturer of electric scooters, has received Rs 900 crore through a right issue from current investors Hero MotoCorp and GIC. Ather previously signed a contract with Hero MotoCorp earlier this week to raise Rs 550 crore.
According to a statement from the company, the money would enable Ather to grow both its footprint and its product line. 350 crore rupees are being invested in the new round by the Singapore-based sovereign fund.
The Bengaluru-based company raised $128 million in its Series E round in May of last year, making this its second-largest funding round. According to TheKredible, the company’s Series E financing valuation was $750 million.
The firm was prepared to make a fresh round and join the unicorn club. Instead of an equity fundraise, it decided to raise money through a right issue.
With 6,835 units sold in August, Ather ranked third among e-scooter manufacturers in terms of volume. With a 29.31% market share, Ola Electric is the dominant player in the industry, followed by TVS, which sold 14,584 units in August.
Additionally, Ather increased its retail base from 30 to 130 outlets, a fourfold increase. The company currently claims more than 200 retail touchpoints spread throughout more than 100 cities, as well as fast-charging networks for electric two-wheelers with more than 1,500 grids bearing the company logo.
According to information obtained through an NSE filing, Ather’s operational revenue increased by 4.4X to Rs 1806.1 crore in FY23 from Rs 413.8 crore while the company’s losses increased by 151.2% to Rs 864.5 crore.
The nearest rival to Ather, Ola Electric, raised between $800 and $900 million in equity and debt financing. During the most recent round, it was valued at over $5 billion. Ola Electric reported operational losses of Rs. 784 crore during FY22 while posting operating income of Rs. 373 crore.
Ola Electric has not yet submitted its FY23 audited financial report, but according to a recent Reuters article, the company lost $136 million ($1,100 crore) in FY23 while having $335 million ($2,700 crore) in revenue.
