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Electric two-wheeler start-up Ather Energy has received ₹180 crore funding from Hero MotoCorp.
Hero MotoCorp will pick up between 26 per cent and 30 per cent following this investment which will be similar to Tiger Global’s stake in the Bengaluru-based company. The company has so far raised ₹81 crore.
Started by two IITians in 2013, Ather Energy Pvt Ltd is working on building an electric two-wheeler called S340. “The fresh investment will go into the production of S340, testing, charging bases and future platform work for more vehicles,” Tarun Mehta, co-founder and CEO told BusinessLine .
Mehta said another 100 employees will be hired during the next 18 months. The company currently has about 150 employees. It will take several months more of testing and validation before the vehicles will be ready to be shipped to the customers, he said. “We are own vendors as we do not buy off the shelf. So, our testing and validation requirements are significantly high. Right now, it is a work in progress,” Mehta said. He said even though Hero MotoCorp is the largest two-wheeler manufacturing company in the world, its interest in Ather Energy will be limited to that of an investment partner though it will have its nominee on the board. “We have got investments from a company which has a deep understanding of the industry. However, the intent is for us to continue to build an independent company and have operational and strategic freedom. We are not here to copy old business models. We believe the future of vehicles is going to be very different,” Mehta pointed out.
Mehta said there is a possibility of the company at some point of time looking at building a four-wheeler, but the current focus will be on S340.
The Board of Directors of Hero MotoCorp, in its meeting held on October 26, approved an investment of up to ₹205 crore, of which the immediate tranche is of ₹180 crore. Pawan Munjal, Chairman, MD & CEO, Hero MotoCorp, said: “Adoption of environment-friendly fuel is a priority for Hero. One of our strategic priorities, therefore, is to engage with the external ecosystem, including start-ups in adjacent areas.”
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