Ather Energy, an electric two-wheeler manufacturer, is currently in discussions to secure a substantial funding round through a combination of primary and secondary share sales, according to individuals familiar with the matter.
Sources have revealed to ET that Sachin Bansal, a cofounder of Flipkart and an existing investor in Ather Energy, has sold a significant portion of his stake in the company to Nikhil Kamath, the cofounder of Zerodha. It is speculated that Kamath may acquire Bansal’s remaining shares in the firm.
Nikhil Kamath, confirming his investment, told the financial daily, “Among my private equity investments, this will be among the largest bets that I have made… I truly believe in the product and I am looking to have a good amount of exposure to Ather for the next decade.”
Concurrently, Ather Energy is in the process of finalizing plans to raise between $75 million and $90 million (approximately Rs 750 crore) in primary funding from its current investors, as reported by the sources. This development highlights the growing investor interest in both the company and the mobility sector. The company is also reaching out to potential new investors.
One of the individuals, who wished to remain anonymous, stated, “The primary funding round construct is yet to be finalised but it is likely to be around $75-90 million in total.”
According to people familiar with the matter, an existing investor may lead the funding round, potentially valuing Ather Energy between $850 million and $1 billion. If the company succeeds in raising primary capital at a $1 billion valuation, it will join the ranks of unicorns, which are startups valued at $1 billion or more.
According to Tracxn data, Bansal, the first angel investor in Ather Energy, maintained a 10.7% ownership stake in the company. He has contributed approximately Rs 400 crore in investments since 2014. Additionally, Flipkart cofounder Binny Bansal holds a 1% stake in the company.
This new fundraising initiative by Ather Energy follows the postponement of its funding plans last year due to unfavorable market conditions. Instead, the company raised Rs 900 crore in September 2023 through a rights issue from Hero MotoCorp and GIC. In December, HeroMotoCorp further increased its stake to 39.7% by investing an additional Rs 140 crore.
On April 6, Ather Energy introduced a new range of ‘Rizta’ scooters aimed at the family segment. With a total production capacity of 450,000 scooters per year, the company plans to expand its current production of 150,000 vehicles per year once the Rizta is launched in the market.