Hero MotoCorp invests Rs 205 crore in Ather Energy

Electric two-wheeler start-up Ather Energy will get a funding of up to Rs 205 crore from Hero MotoCorp for their upcoming S340 scooter.

In what is touted to be the largest funding in the electric two-wheeler segment in India, Hero MotoCorp will invest Rs 205 crore in Ather Energy. For the uninitiated, Ather Energy is developing India’s first smart, electric scooter, the S340. Previously, the company has also received funds from Tiger Global and owners of Flipkart for the development of its upcoming product.

As per the statement released by Ather Energy, this fresh round of funding will be used by Ather to “sustain momentum in its journey of building a future-ready product platform, and to accelerate the infrastructure and ecosystem development around electric vehicles in the country.” In return of the investment, Hero MotoCorp will have 26-30 per cent stake in the start-up. The total investment is of 205 crore, of which the immediate tranch is of Rs. 180 crore, confirmed the firm.

Commenting on this investment, Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero MotoCorp, said “As the market leader and a global automotive major, Hero takes the lead in many areas that benefit the environment, customer and industry. Adoption of environment-friendly fuel is a priority for Hero, as is propagating sustainable manufacturing through green facilities. One of our strategic priorities, therefore, is to engage with the external ecosystem, including start-ups in adjacent areas. Hero MotoCorp intends to enhance its participation in the EV space by pursuing its internal EV program in addition to partnering with Ather. We are excited to be a strategic investor and see this as an important step in building the necessary ecosystem needed to support commercialisation of EVs in the country.”

Coming to the scooter, Ather unveiled the S340 earlier this year. It is going to be a smart or ‘connected’ electric scooter, featuring a Lithium ion battery pack. The scooter will have a top speed of 72 km/h and a range of 60km. But these are not the scooter’s main highlights, insists the maker. The Ather S340 will have advanced connectivity options such as on-board navigation, pre-emptive diagnostics, remote configuration and personalised ride profiles through a touchscreen dashboard and mobile app. Additionally, Ather also plans to set up a sustainable charging infrastructure in every city in partnership with government and private enterprises.

Also read: Ather S340 electric scooter unveiled