Investment to be used in facilities to address demand for its flagship Ather 450X, which will begin to be rolled out in Q4 2020
Ather Energy today announced of a fresh investment by Hero MotoCorp into the company, as an extension of its Series C round that was led by Sachin Bansal. Hero MotoCorp invested Rs 84 crore in Ather Energy, taking up its shareholding to 34.58 %, from 31.27 %. Hero MotoCorp has been a part of Ather’s growth story since 2016, when they first invested as a part of Series B.
The electric scooter manufacturer is entering an aggressive expansion phase on the back of its flagship product, the Ather 450X, and looking to scale to 20 cities by the end of 2021. The Ather 450X will be available in cities including Hyderabad, Pune, Delhi and Mumbai, with deliveries beginning in October 2020. To meet the projected demand in the coming years, the company is opening a new manufacturing facility in Hosur, which is designed to produce 100,000 units annually, and is scalable to 500,000 units. Ather Energy will also set up Ather Grid fast charging points across the country over the next five years, making public charging easy and accessible to all EV owners.
A unique aspect of the product line is the ability to add new features and functionality through over-the-air (OTA) software updates, the company noted. It has been rolling out OTA updates since September 2018, adding features like a dark theme, new ride modes, guide-me-home light, making them one of the fastest iteration cycles in the country.
Tarun Mehta, Co-founder and CEO, Ather Energy, said the company is in a high growth phase of its journey, and has not altered its expansion despite the challenging last few months. Ather’s geographic expansion and the roll-out schedule for the Ather 450X are on track, he added. Mehta further said that the company will be using these funds to invest in its facilities to meet the demand it has seen for the Ather 450X across the country.
The company is excited to see the growth of Ather Energy in the recent years, noted Rajat Bhargava, Head of Emerging Mobility Business Unit (EMBU), Global Business & Strategy, Hero MotoCorp. He said Hero MotoCorp sees immense potential for Ather to expand their market even further, especially given the likely growth of EVs in the near future. In addition to its efforts of developing a robust external eco-system for EVs, Hero MotoCorp is also aggressively working on its internal EV programme. “Our aim is to provide accessible electric mobility to customers across the globe. Sustainability and a clean, green environment remain central to our vision to be the future of mobility,” added Bhargava