Flipkart co-founder Sachin Bansal exits Ather Energy after selling stake to Hero MotoCorp, Nikhil Kamath

Sachin Bansal, co-founder of Flipkart, has reportedly exited from Ola Electric rival Ather Energy after selling a 7.5% stake. 

The report comes a day after two-wheeler maker Hero MotoCorp announced that it will be acquiring an additional 2.2% stake in Ather Energy for Rs 124 crore.

While the company didn't reveal from whom it will acquire a stake, an ET report said Sachin Bansal sold his 2.2% stake to Hero MotoCorp and the rest to Zerodha co-founder Nikhil Kamath.

Bansal's investment journey in Ather Energy

Sachin Bansal, one of the first investors in Ather Energy, invested around Rs 400 crore over the years, starting in 2014. However, He has gradually reduced his stake, and this recent sale finalizes his departure from the firm.

Hero MotoCorp's ownership

Hero MotoCorp, which was already the largest shareholder in Ather Energy, now holds approximately 40% of the company's total shareholding after this purchase.

The stake purchased by Hero MotoCorp was reportedly valued at an inferred valuation of Rs 5,636 crore, a significant premium compared to its previous valuation of Rs 4,666 crore. The remaining 5.3% stake sold to Kamath is valued at around Rs 282 crore.

Is it profitable?

According to a regulatory filing, Ather's estimated turnover for fiscal 2024 is Rs 1,753 crore, slightly down from Rs 1,784 crore in FY23. However, the company has faced financial challenges, recording a net loss of Rs 864 crore in FY23.

Despite this, The company is focused on growth and plans to raise an additional $75-90 million (approximately Rs 750 crore) in primary funding from both new and existing investors. The upcoming funding round is likely to be led by an existing investor.

Recent funding and competition

Ather Energy is actively seeking new investments to bolster its growth and operations. The Bengaluru-based EV maker recently raised Rs 286 crore ($34 million) from its founders and Stride Ventures through a mix of debt and equity funding.

Stride Ventures invested close to Rs 200 crore via debentures, while the co-founders, Tarun Sanjay Mehta and Swapnil Jain, each contributed Rs 43.28 crore via Series F preference shares.

Last September, it raised Rs 900 crore from Hero MotoCorp and GIC through a rights issue. The funds were used to support its expansion and new product launches. Ather Energy recently launched a new range of 'Rizta' scooters, targeting the family segment.

Ather Energy competes with major players like Bhavish Aggarwal-led Ola Electric, TVS, and Bajaj in the electric scooter segment.