Funding · Mobility & Logistics

Ather Energy raises Rs 286 crore in first 2024 funding round, with co-founders investing Rs 43.28 crore each

By Startup Enthusiast · 31 May 2024

Date: 31 May 2024
Company: Ather Energy
What it does: Electric scooter manufacturer
Kind: Funding
Amount: Rs 286 crore ($34.5M)
Stage: Series F
Sector: Mobility & Logistics

What they do

Ather Energy manufactures electric scooters for urban commuters

What happened

The company raised Rs 286 crore via debt and equity from Stride Ventures and its founders, with each co-founder investing Rs 43.28 crore This capital…

The details

Ather Energy raised Rs 286 crore ($34.5M) in its first funding round of 2024.
Stride Ventures invested Rs 200 crore into the company through debentures
Co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain each invested Rs 43.28 crore via preference shares.
The total funds raised by Ather to date now stand at approximately $450 million.
Media reports indicate the company was in talks for a $95 million pre-IPO round.
Sachin Bansal sold a significant stake portion to Zerodha co-founder Nikhil Kamath.
The last known valuation was $750 million during Series E in May 2022.
Valuation has remained undisclosed since May 2022 with expectations of unicorn status.

The bigger picture

The funding comes after Hero MotoCorp acquired an additional 3% stake in December 2023.
Hero MotoCorp remains the largest external stakeholder in the electric vehicle maker.

About the business

Ather Energy designs and sells electric scooters primarily in India.
FY23 revenue from operations reached Rs 1,784 crore, up 4.36 times.
FY23 losses widened to Rs 864.5 crore, increasing 2.5 times year-on-year.
FY24 financial results have not yet been filed with regulators.
April sales dropped sharply to 4,000 units from 17,000 in March.
The electric two-wheeler sector saw a general 50% drop in April sales.
Competitor Ola Electric sold over 33,000 units in April, holding ~50% market share.
Major stakeholders include Tiger Global and Caladium Investment alongside founders.
The company operates in the competitive electric mobility segment of consumer transport.

What happens next

The company is expected to achieve unicorn status in upcoming rounds.
Financial results for FY24 are pending filing.
Pre-IPO discussions may continue with new investors.

The deal

Type: debt + equity

Investors

Stride Ventures (lead) — Venture capital firm investing Rs 200 crore via debentures.
Hero MotoCorp (existing) — Largest external stakeholder that bought 3% more stake in Dec 2023.
Tiger Global (existing) — Major stakeholder listed among other significant investors.
Sachin Bansal (seller) — Sold significant stake portion to Nikhil Kamath.

Founders

Tarun Sanjay Mehta, co-founder
Swapnil Babanlal Jain, co-founder

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