Ather Energy, an electric two-wheeler manufacturer, is preparing to raise substantial funding through a mix of primary and secondary share sales. Sources close to the matter have revealed that Sachin Bansal, a co-founder of Flipkart and an existing investor in Ather Energy, has divested a sizable portion of his holdings to Nikhil Kamath, the co-founder of Zerodha. This move has sparked speculation that Kamath may acquire Bansal’s remaining shares in the company.
Nikhil Kamath, commenting on his investment, stated, “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.” Concurrently, Ather Energy is finalizing plans to raise between $75 million and $90 million (approximately Rs 750 crore) in primary funding from its current investors. The company is also exploring options to bring on new investors.
One source, requesting anonymity, said, “The primary funding round construct is yet to be finalized but it is likely to be around $75-90 million in total.” Individuals familiar with the matter suggest that an existing investor may lead the funding round, potentially valuing Ather Energy between $850 million and $1 billion. If the company succeeds in raising primary capital at a $1 billion valuation, it will join the ranks of unicorns, startups valued at $1 billion or more.
According to data from Tracxn, Bansal, the first angel investor in Ather Energy, held a 10.7% ownership stake in the company. He has contributed approximately Rs 400 crore in investments since 2014. Additionally, Flipkart co-founder Binny Bansal holds a 1% stake in the company.
This latest fundraising initiative by Ather Energy follows the postponement of its funding plans last year due to unfavorable market conditions. Instead, the company raised Rs 900 crore in September 2023 through a rights issue from Hero MotoCorp and GIC. In December, HeroMotoCorp further increased its stake to 39.7% by investing an additional Rs 140 crore.
On April 6, Ather Energy introduced a new range of ‘Rizta’ scooters aimed at the family segment. With a total production capacity of 450,000 scooters per year, the company plans to expand its current production of 150,000 vehicles per year once the Rizta is launched in the market.
