Hero MotoCorp Boosts Stake in Ather Energy, Invests Rs 140 Crore
Three points you will get to know in this article:
- Hero MotoCorp increased its stake in Ather Energy by 3%, investing Rs 140 crore.
- Ather secured a significant Rs 900 crore investment, with Hero MotoCorp contributing Rs 550 crore.
- Rachna, an experienced HR leader, joined Hero MotoCorp after a successful tenure at Whirlpool Asia.
Hero MotoCorp has successfully secured an extra 3% ownership in the dynamic electric vehicle enterprise, Ather Energy, by investing a noteworthy sum of Rs 140 crore (equivalent to approximately $16.8 million).
As disclosed in official regulatory documents, this strategic investment involves the acquisition of supplementary shares from Ather’s current stakeholders. Through this move, Hero MotoCorp is poised to elevate its existing stake in Ather Energy from 36.7% to a substantial 39.7%.
Hero MotoCorp’s Continuing Support for Ather
Ather’s present roster of stakeholders boasts prominent names such as Tiger Global, GIC, Caladium Investment, and the esteemed Sachin Bansal, the founder and CEO of Navi. For a comprehensive insight into this transformative development, delve into TheKrdible.
In the vibrant month of September, the innovative team at Ather, based in Bengaluru, successfully secured a substantial investment of Rs 900 crore (equivalent to $108 million). This funding came through a right issue and was made possible through contributions from esteemed partners, Hero MotoCorp and GIC. Notably, Hero MotoCorp formalized their commitment to Ather by pledging Rs 550 crore as a significant portion of this funding round.
Ather’s Financial Performance and Future IPO Plans
Fast forward to May 2022, Ather celebrated another milestone by raising an impressive $128 million in its Series E round, valuing the company at a remarkable $750 million. Unfortunately, the latest valuation of the company remains undisclosed.
Highlighting Ather’s financial performance, the figures tell a compelling story. In the fiscal year concluding in March 2023, Ather witnessed a remarkable 4.36X surge in revenue from operations, soaring to Rs 1,784 crore. However, it’s worth noting that this success was accompanied by increased losses, which grew 2.5X to reach Rs 864.5 crore in FY23, compared to Rs 344 crore in the preceding fiscal year (FY22). Despite the challenges, Ather’s journey remains marked by resilience and substantial achievements. Ather is said to be in preparations for its debut in the stock market through an initial public offering (IPO), aiming for a listing around Diwali 2024 or in the early months of 2025.
Rachna’s Professional Background and New Role at Hero MotoCorp
In a notable development, Ola Electric, a key rival of Ather, recently disclosed a substantial surge in its overall revenue, marking an impressive 510% increase to Rs 2,782 crore in FY23 from Rs 456 crore in FY22. Anticipating this positive momentum, the company is poised to submit its IPO documents by the upcoming deadline of December 20.
Rachna, a seasoned HR leader with a wealth of experience in diverse industries like consumer goods, food & beverages, oil & gas, and retail, has recently joined Hero MotoCorp after an impactful tenure as CHRO at Whirlpool Asia.
Throughout her career journey, Rachna has played pivotal roles at renowned companies such as Tata Trent, Hindustan Coca-Cola Beverages Pvt Ltd, Castrol Lubricants, and Philips. Beyond traditional HR responsibilities, her expertise extends to crafting agile and efficient organizational structures, shaping talent strategy, overseeing performance management, fostering learning & development, and championing progressive industrial and employee relations.
Her professional trajectory reflects a commitment to not just HR functions but also to broader themes that contribute to organizational excellence. Rachna brings a unique blend of strategic insight and hands-on experience to her role, ensuring a positive impact on the company’s overall growth and employee well-being.
In conclusion, Hero MotoCorp increased its ownership in Ather Energy by 3%, investing Rs 140 crore. Ather secured a significant investment of Rs 900 crore with Hero MotoCorp’s support. Despite impressive revenue growth to Rs 1,784 crore, Ather’s losses also expanded in FY23. Ather aims for an IPO debut around Diwali 2024 or early 2025. Additionally, Rachna, a seasoned HR leader, joined Hero MotoCorp, bringing diverse industry experience and a focus on organizational excellence. Meanwhile, Ola Electric observed a substantial revenue surge and is poised to submit its IPO documents soon.
