Bengaluru-based Ather Energy has secured a substantial funding boost of INR 286 crore (USD 34 million) from its founders and Stride Ventures.
The company is the manufacturer of electric scooters who revealed that the funds were obtained through issuing of bonds and through the sale of shares. Series F compulsorily convertible preference shares were provided by the founders Tarun Mehta and Swapnil Jain for 86 crore INR and further, Series C3 debentures were issued to Stride Ventures for financing 200 crore INR. This strategic funding will be very crucial in helping Ather execute his expansion plans as well as the development of further products.
Earlier this year, in a bid to expand its portfolio, the top electric scooter company Ather Energy released its new model the ‘Rizta’ in an event of Ather Community Day at Bengaluru. The new scooter costs INR 1,09,999 (ex-showroom Bengaluru) and is aimed at addressing family requirements thus shifting Ather’s focus from its prior target markets. This new model is expected to capitalise on the success of the Ather 450, which can place the company in an exciting position in the electric two-wheeler space.
Taking the Linden Amendment into account, Ather Energy has been leading the augmentation of the electric vehicle (EV) market with its creations and plans. Speaking to Bloomberg, the company’s CEO, Tarun Mehta , is confident about the enhancements brought by the new Rizta model that has the possibility of being even more successful than before. This should help to grow Ather’s business more aggressively and to continue developing new ideas and services, it states.
The investment occurred at the right time for Ather because the company needs support to compete against other players in the market, especially in the EV segment. The proceeds will be used to increase production capacity, increase the range of products made, and perhaps diversify into new acquisitions, whether domestic or overseas. This fits well with Ather’s vision of bringing about a shift to electric mobility in the country.
The latest INR 200 Cr investment by Stride Ventures shows that investors are keen and convinced with the business model that Ather Energy has been aiming and targeting at. Well understood Ather Energy as a company with high growth potential, which guarantees it a strong position in the market; Ather Energy has a Originate from Stride Ventures so that we can underline the company has good economic support from this type of venture capital firms.
The partnership with Stride Ventures is not just about financial support; it also brings strategic guidance and industry expertise to Ather. This collaboration is expected to open new avenues for growth and innovation, helping Ather to stay ahead in the fast-evolving EV market.
The additional investment from founders Tarun Mehta and Swapnil Jain highlights their continued commitment to the company’s vision and goals. Their willingness to reinvest in the company demonstrates a strong belief in Ather’s potential to lead the electric mobility revolution in India. This move also sends a positive signal to other investors about the stability and growth prospects of Ather Energy.
With this new funding, Ather Energy is well-positioned to accelerate its growth trajectory. The company plans to leverage the funds to scale up production, enhance research and development, and expand its sales and service network across India. Ather’s focus on continuous innovation and customer satisfaction remains at the core of its strategy.
As the EV market in India continues to grow, Ather Energy’s proactive approach to securing funding and launching new products places it in a strong position to capitalize on the increasing demand for sustainable and efficient transportation solutions. The company’s commitment to quality and innovation ensures that it will continue to play a pivotal role in shaping the future of electric mobility in India.
In conclusion, Ather Energy’s recent funding success marks a significant milestone in its journey towards becoming a leading player in the electric vehicle industry. The support from its founders and Stride Ventures not only provides the necessary financial backing but also reinforces confidence in Ather’s vision and strategy. With a solid foundation and ambitious plans, Ather Energy is set to drive forward the electric mobility revolution in India.
