EV maker Ather Energy raises Rs 60 crore in debt from Stride Ventures: Report

Bengaluru-based EV maker Ather Energy has reportedly raised Rs 60 crore in debt funding from Stride Ventures.

According to the Entrackr report, the funding was facilitated through Vistra ITCL, the company's trustee. The move aligns with the company's broader strategy to prepare for a potential Initial Public Offering (IPO). 

Notably, its rival, Ola Electric, will launch an IPO for retail subscription on August 2 and close on August 6, 2024. 

Recent fundraising

The report comes almost two months after Ather Energy raised Rs 286 crore or about $34 million through a mix of debt and equity, primarily through venture debt and contributions from co-founders.

Reportedly, a New Delhi-based venture debt firm, Stride Ventures, invested close to Rs 200 crore via debentures, while the company's co-founders, Tarun Sanjay Mehta and Swapnil Jain, each contributed Rs 43.28 crore via Series F preference shares.

Overall, Ather Energy has raised approximately $450 million to date from prominent investors, including Tiger Global and Hero MotoCorp.

Hero MotoCorp, which holds a significant 38% stake in Ather, recently reported 

Ather Energy's financial performance

For FY24, Ather Energy's revenue stood at Rs 1,789 crore, compared to Rs 1,783 crore in the previous fiscal year, according to the annual report of Hero MotoCorp.

The company's net loss increased to Rs 1,059.7 crore in FY24 from Rs 864.5 crore in FY23.

It stands as the fourth largest two-wheeler EV manufacturer in India, with 6,097 units sold in June 2024, capturing a 7.66% market share.

While Bhavish Aggarwal-led Ola Electric leads the market with a 44% share, Ather continues to hold its ground with steady sales primarily driven by its electric scooters, after-sale services, and subscriptions.

Expansion plans

In late June this year, Ather Energy said it would invest Rs 2,000 crore to establish its third manufacturing plant in Chhatrapati Sambhajinagar, Maharashtra.

The EV maker will establish the facility in Aurangabad Industrial City (AURIC).

Big investment in Maharashtra in automotive sector!

Welcome to Maharashtra, Ather !
Just got done with a meeting with the Founder of Ather Energy, Shri Swapnil Jain and I’m glad to share that he informed about their great decision that Ather Energy, the leading electric scooter… pic.twitter.com/Hc8EeaDdM6

— Devendra Fadnavis (@Dev_Fadnavis) June 26, 2024