Electric scooter maker Ather Energy has borrowed Rs 130 billion from existing investor Hero MotoCorp. This is the Bengaluru-based company’s first brew this year. It had $ 35 million in it Series D round in November 2020.
Ather Energy has received a sanction letter from Hero FinCorp Limited [an associate company of Hero MotoCorp] Government documents show for a loan amount of Rs 130.00 crore.
The group, led by Pawan Munjal, was the main investor in Ather Energy’s Series B fundraiser in 2016 and owns approximately 35% of the shares in the company.
The new fund comes at a time when Other Energy is planning to increase its charging stations and expand its presence in more cities.
Unlike in the past, the company run by Tarun Mehta is witnessing hyper-competition from Ola Electric, which will soon be delivering its S1 and S1 pro electric scooters. Accel-backed bounce and traditional scooter manufacturers will also be showcasing their respective portfolios of e-scooters.
Ola Electric recently had $ 200 million raised at a valuation of $ 3 billion and according to media reports it is rising another $ 200 millionn valued at over $ 5 billion.
Bounce also entered the fray with the acquisition of 22 Motors from Gurugram. The company is expected to begin shipping scooters by the end of this fiscal year. Trickypedia would have exclusively reported the takeover and ambitions of the EV company.
Currently Hero Electric is the market leader with 36% Market share in the Indian two-wheel EV segment. The two-wheeler major currently has 1,000 charging stations. To increase this by 10 times [10,000 charging stations], it’s recently in partnership with massive mobility
For the fiscal year ended March 31, 2021 Ather Energy grew 126% in operating income which stood at Rs 79.8 crore in FY21. While the bulk of this revenue comes from the sale of electric scooters, collections from the after-sales service area have also increased 433.34% to Rs 1.6 billion in the past fiscal year.
Even with a 126% increase in sales, the annual losses in FY21 had only increased 6% to Rs 233.3 billion, compared to Rs 220 billion lost in FY20. The company aims to become profitable operationally in FY22 and is in the marketplace to raise a new equity round.