Ather boosts R&D spending, raises ₹900 crore to expand products, charging network
Indian e-two-wheeler (e2W) maker Ather Energy announced it had raised ₹900 crore from existing shareholders Hero MotoCorp and Singapore's sovereign wealth fund GIC.
The funds were raised through a rights issue, the company said. Of the total, Hero MotoCorp, which owned 33.1 percent in the company before the right issues, contributed ₹550 crore.
Bangalore-based Ather, which runs manufacturing units in Tamil Nadu, said it would use the money to launch new products and expand its charging network. The company maintains 1,500 charging grids across the country at present.
In a statement, CEO & co-founder Tarun Mehta said, "There was strong support for the rights issue and we are very happy to see the confidence exhibited by shareholders."
The company is boosting money for research and development, Mehta said, adding that the R&D outlay in 2023-24 would be "our largest yet".
"We have always believed that this transition will be led by world class technology and products designed and built in India and this year will be no different," Mehta added.
Ather's fund raising comes rising sales for e2Ws. India is the world's third largest auto market, and the government has been incentivizing the EV industry through subsidy schemes aimed at both manufacturers and consumers. It aims for e2Ws to account for 70 percent of all two-wheeler sales in country by 2030, up from 14 percent at present.