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Ather Energy Gets Fresh Funding From Hero MotoCorp

The latest funding round is an extension of last year’s series C or growth round led by Flipkart Co-founder Sachin Bansal.

Ather Energy plans to take its Ather 450X electric scooter to 20 cities by the end of 2021. (Photo: Ather Energy)
Ather Energy plans to take its Ather 450X electric scooter to 20 cities by the end of 2021. (Photo: Ather Energy)

Ather Energy Pvt. Ltd. received fresh funding from existing investor Hero MotoCorp Ltd. as the electric scooter maker plans to expand, expecting the demand for personal vehicles to rise during the pandemic.

Hero MotoCorp, India's largest two-wheeler maker and one of the earlier backers of Ather Energy, invested Rs 84 crore ($11 million) in the Bengaluru-based startup, according to a company statement. The round is an extension of last year's series C or growth round led by Flipkart Co-founder Sachin Bansal.

The investment comes at a time when many of the large automakers have deferred investments in EV. But demand for personal mobility is expected to pick up as people avoid shared transport on fears of contagion.

"Covid-19 doesn't change a lot for electric two-wheelers, barring a delay of plans by three to four months," Tarun Mehta, co-founder and chief executive officer at Ather Energy, told BloombergQuint earlier this month. The demand in Bengaluru, he said, is already back to 80%.

In a statement announcing the funding, Mehta said that the company is entering its high-growth phase and will use the funds to expand its capacity. “While the last few months have been challenging, we have not altered our expansion plans.”

The company’s geographic expansion and the rollout schedule for the Ather 450X are on track, Mehta said.

The company plans to take Ather 450X to 20 cities by the end of 2021. The electric two-wheeler maker said it's on track to open a new manufacturing facility in Hosur, Tamil Nadu, that can produce 100,000 units annually, and will be scalable to half a million units.

Also Read: Pandemic Stalls The Boom For India’s Best-Selling Electric Vehicle

Rajat Bhargava, head of emerging mobility business unit, global business and strategy, Hero MotoCorp, said they see potential in Ather Energy to expand their market further. Hero MotoCorp, he said, is also working on their internal EV programme.