 "Hero MotorCorp invests Rs 20 cr in two-sheeler start-up Ather Energy")
Hero MotorCorp has invested an additional Rs 20 crore in Ather Energy, the smart electric two-wheeler start-up, as part of the company's total commitment of Rs 205 crore for 26-30 per cent of the stake in the company.
Hero's balance sheet shows the company has invested Rs 20.05 crore during the quarter and half-year ended September in Ather Energy Pvt Ltd (India), which was termed as an associate of the company.
The Bengaluru-based start-up is engaged in the business of designing and manufacturing smart elecrtric vehicles and associated charging infrastructure.
Ather said Rs 20.05 crore was the last installment of the Rs 205 crore investment commitment made by Hero last year.
In October 2016, Hero had invested Rs 180 crore for a 26-30 per cent stake in Ather. The funding marks the third round of investments in Ather Energy, which is building the country's first smart electric scooter. Previous rounds of investments in the company were by Tiger Global, and Sachin and Binny Bansal, promoters of Flipkart, in their personal capacity.
The company's first electric scooter is expected to be ready by mid-next year.
Earlier, Ather Energy said it is planning to raise over Rs 200 crore to support its plan to launch the country's first smart, electric scooter. The company also set a target to sell around 20,000-30,000 units in three or four years.
"We do not intend to restrict Ather to manufacturing automobiles alone in future," said a senior company official.
Tarun Mehta, CEO and co-founder of Ather Energy earlier said the functional test for the smart electric scooter model was positive. By February the company expects to start trial production and by the middle of next year the product will be in the market.
Mehta ruled out using Hero MotoCorp's network and sharing of technologies with Hero.
"We don't have any technology sharing, product sharing or IT sharing agreement with Hero," said Mehta, who will be taking on Hero, TVS and other other big brands in the market.
Hero's balance sheet shows the company has invested Rs 20.05 crore during the quarter and half-year ended September in Ather Energy Pvt Ltd (India), which was termed as an associate of the company.
The Bengaluru-based start-up is engaged in the business of designing and manufacturing smart elecrtric vehicles and associated charging infrastructure.
Ather said Rs 20.05 crore was the last installment of the Rs 205 crore investment commitment made by Hero last year.
In October 2016, Hero had invested Rs 180 crore for a 26-30 per cent stake in Ather. The funding marks the third round of investments in Ather Energy, which is building the country's first smart electric scooter. Previous rounds of investments in the company were by Tiger Global, and Sachin and Binny Bansal, promoters of Flipkart, in their personal capacity.
The company's first electric scooter is expected to be ready by mid-next year.
Earlier, Ather Energy said it is planning to raise over Rs 200 crore to support its plan to launch the country's first smart, electric scooter. The company also set a target to sell around 20,000-30,000 units in three or four years.
"We do not intend to restrict Ather to manufacturing automobiles alone in future," said a senior company official.
Tarun Mehta, CEO and co-founder of Ather Energy earlier said the functional test for the smart electric scooter model was positive. By February the company expects to start trial production and by the middle of next year the product will be in the market.
Mehta ruled out using Hero MotoCorp's network and sharing of technologies with Hero.
"We don't have any technology sharing, product sharing or IT sharing agreement with Hero," said Mehta, who will be taking on Hero, TVS and other other big brands in the market.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%