Sachin Bansal, co-founder of Flipkart, has exited Ather Energy by selling his remaining 7.5% stake. The stake was split between Hero MotoCorp and Nikhil Kamath, co-founder of Zerodha. Hero MotoCorp acquired a 2.2% stake for Rs 124 crore, while Kamath bought the remaining 5.3% stake for approximately Rs 282 crore.
Significant Investor
Bansal was one of the early investors in Ather, investing nearly INR 400 crore in the electric vehicle (EV) maker since 2014. His exit marks a significant shift in the ownership structure of Ather Energy, which competes with Ola Electric and TVS Motor in the Indian EV market.
Financial Performance
Ather Energy has faced financial challenges, with net losses widening over 150% year-on-year (YoY) to INR 864.5 crore in FY23. Despite this, the company’s operating revenue increased 4.3 times YoY to INR 1,753 crore during the same period. However, this was a 1.7% decrease from the previous fiscal year, reflecting the impact of rising competition, subsidy reductions, and overall market slowdown due to macroeconomic pressures.
Hero MotoCorp’s Increased Stake
Following the acquisition, Hero MotoCorp now holds approximately 40% of Ather Energy’s total shareholding. This increased stake comes after Hero MotoCorp’s recent announcement of acquiring an additional 2.2% stake in Ather for Rs 124 crore. In a filing with the Bombay Stock Exchange (BSE), Hero MotoCorp noted Ather’s turnover of INR 1,753.8 crore for FY24, a slight decrease from INR 1,780.9 crore in the previous year.
Recent Fundraising
Ather Energy has been actively raising funds. The company’s board recently approved plans to raise INR 286.5 crore through a mix of equity and debt. In September 2023, Ather secured INR 900 crore from existing shareholders Hero MotoCorp and GIC through a rights issue.
Ather’s Market Presence
Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather Energy is a prominent player in the Indian electric two-wheeler market. The company designs, manufactures, and services electric two-wheelers and operates its own charging infrastructure. Ather is also involved in the storage, distribution, and management of electric power and other ancillary services.
Market Dynamics
Despite its financial challenges, Ather Energy continues to innovate and expand its market presence. The EV maker’s recent foray into the language learning segment with a new app and its continuous efforts to raise funds demonstrate its commitment to growth and adaptation in a competitive market.
Conclusion
Sachin Bansal’s exit from Ather Energy signifies a pivotal moment for the company as it navigates financial challenges and seeks to strengthen its market position. With Hero MotoCorp increasing its stake and ongoing efforts to secure additional funding, Ather Energy remains a key player in the Indian electric two-wheeler market. The company’s ability to innovate and adapt will be crucial as it competes with established players like Ola Electric and TVS Motor.