Funding · Mobility & Logistics
Ather Energy raises ₹1,200 crore through preferential issue
By Startup Enthusiast ·
- Date
- Company
- Ather Energy
- What it does
- Electric two-wheeler manufacturer
- Kind
- Funding
- Amount
- ₹1,200 Cr
- Stage
- late
- Based in
- Bengaluru
- Founded
- 2013
- Sector
- Mobility & Logistics
What they do
Ather Energy designs, manufactures, and sells electric scooters while managing its own charging network and energy storage infrastructure
What happened
The company secured ₹1,200 crore through a preferential issue of equity shares to the India-Japan Fund and convertible warrants to Hero MotoCorp, with Hero…
Why it matters
This capital injection supports Ather's growth in the competitive electric two-wheeler market following a significant reduction in its quarterly losses
The details
- Ather Energy received board approval for a ₹1,200 crore preferential fundraise involving equity shares and convertible warrants.
- The India-Japan Fund invested ₹200 crore by purchasing 16.3 lakh equity shares at a price of ₹1,230 per share.
- Hero MotoCorp was allotted 76.2 lakh convertible warrants at ₹1,260 each, totaling approximately ₹1,000 crore upon full conversion.
- Warrant holders must pay 25% of the total value upfront, with the remaining 75% due upon conversion into equity.
- Hero MotoCorp also plans to acquire additional shares from an undisclosed existing shareholder for ₹1,758 crore by September 3, 2026.
- These transactions will increase Hero MotoCorp's total stake in the company to approximately 32.8%.
The bigger picture
- Ather reported a significantly narrower net loss of ₹50.87 crore in the latest quarter compared to previous periods.
- Strong market demand for the Rizta electric scooter model has contributed to the company's improved financial performance.
About the business
- Ather Energy designs, manufactures, and services high-performance electric two-wheelers.
- The company operates its own proprietary charging infrastructure network for its customers.
- It is actively involved in energy storage, distribution, and management technologies.
- The company reported a turnover of ₹3,671.76 crore for the FY26 period.
- Revenue has grown consistently from ₹1,753.8 crore in FY24 to ₹2,255 crore in FY25.
What happens next
- The company intends to list the new shares on the NSE and BSE following regulatory approvals.
- The secondary share purchase by Hero MotoCorp is expected to close by September 3, 2026.
The deal
- Type
- preferential issue
Investors
- India-Japan Fund (participated) — A fund represented by NIIF.
- Hero MotoCorp (participated) — A major Indian motorcycle and scooter manufacturer.
Founders
- Tarun Mehta, Founder
- Swapnil Jain, Founder
Other articles talking about it
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- Ather Energy launches mass-market Konarc electric scooter10 September 2026 · Launch
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- Ather launches Konarc electric scooter at Community Day29 August 2026 · Launch
- Ather Energy narrows loss, revenue jumps 89%6 August 2026 · Results
- Ather Energy to launch mass-market scooter Konarc29 July 2026 · Launch
- Ather CEO flags PLI scheme quirk excluding EV startups24 July 2026 · Policy
- Ather Energy raises ₹1,300 crore via QIP21 July 2026 · Funding · ₹1,300 crore
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