Bengaluru based electric two wheelers manufacturer Ather Energy has raised USD 51 million led by Flipkart co-founder Sachin Bansal, who invested USD 32 million.
While venture debt fund Innoven Capital put in USD 8 million in debt, Hero MotoCorp converted its convertible debt of USD 19 million in equity.
The company has raised a total of USD 95 million from Hero MotoCorp, Tiger Global and Flipkart founders Sachin and Binny Bansal.
Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather Energy is one of the earlier companies in which Sachin Bansal put in his bet. In 2014, Bansal invested USD 500,000 as an angel investor.
“It’s almost like a dream for an entrepreneur for an angel investor to come back as Series C investor. This has come at a great time for us as the core product experience that we were building for the last few years has started to work really well,” Tarun Mehta told Mint.
Ather Energy designs and manufacturers electric two-wheelers for Indian market. It has two electric scooters models priced at Rs. 123, 230 and Rs. 111,230 in Bengaluru. The company’s flagship Ather 450 opened for pre-orders in Bengaluru in June 2018 with deliveries beginning in September 2018. The company claims the models are out of stocks till September 2019.
According to a 2018 report by Techsci Research, electric two wheeler market of India stood at around USD 27 million in 2017 and is forecast to grow at a CAGR of over 41% to reach USD 200 million by 2023, on account of growing need to curb air pollution levels across the country.
“The traditional auto industry is up for a redefinition. Watching Ather closely since my early investment in 2014, I am convinced that the ecosystem that Ather is building with their products is the future of urban mobility. Their focus on end to end customer experience will open up new revenue opportunities and accelerate the adoption of electric vehicles in India. The future is electric and I am excited to be a part of this journey in shaping the future,” Sachin Bansal said in a statement.
Ather will use this round of funding to expand in newer markets and expanding the production capacity of its electric scooters to 25,000 units per year by the end of 2019.
It is going to enter Chennai and will also deploy funds to increase the number of charging units to 55 by this year end. It is aiming for at least 31 charging stations in Bengaluru.
“We will have a total of 10 charging stations in Chennai in a few days from now,” Mehta said. By the end of 2023, Ather Energy claims to install 6500 charging stations across 30 cities. To meet the projected demand in the coming years, the company is planning a new manufacturing facility which will be designed to produce 1 million vehicles a year.
The company aims to sell a million electric two wheelers in five years and around 200,000 units in the next three years.