Key Points
Funding Boost: Ather Energy secures ₹286 crore (USD 34 million) from founders Tarun Mehta and Swapnil Jain, and Stride Ventures.
Details of Funding: ₹86 crore raised through Series F compulsorily convertible preference shares from the founders. ₹200 crore raised through Series C3 debentures issued to Stride Ventures.
Product Launch: Ather Energy launched a new electric scooter model, the Rizta, priced at ₹1,09,999 (ex-showroom Bengaluru).
The Rizta is designed to meet family needs, expanding Ather’s market focus.
CEO’s Vision: CEO Tarun Mehta expressed confidence in the new Rizta model, expecting it to be highly successful and drive aggressive business growth.
Strategic Importance: The investment is timely for Ather to compete in the growing EV market.
Funds will be used to increase production capacity, diversify product offerings, and explore new acquisitions.
Investor Confidence: Stride Ventures’ ₹200 crore investment highlights strong confidence in Ather’s business model and growth potential.
Stride Ventures provides not only financial support but also strategic guidance and industry expertise.
Founders’ Commitment: Additional investment from founders Tarun Mehta and Swapnil Jain demonstrates their ongoing commitment to Ather’s vision and goals.
This move signals strong belief in Ather’s potential to lead the electric mobility revolution in India.
Future Plans: Ather plans to leverage the new funds to scale up production, enhance R&D, and expand its sales and service network across India.
The focus remains on continuous innovation and customer satisfaction.
Market Position: Ather Energy is well-positioned to capitalize on the growing demand for sustainable transportation solutions in India.
The proactive approach to securing funding and launching new products strengthens Ather’s position in the EV market.
Long-Term Vision: Ather aims to be a leading player in the electric vehicle industry, driving forward the electric mobility revolution in India.
Ather Energy Secures ₹286 Crore in Funding from Founders and Stride Ventures
Bengaluru-based electric scooter manufacturer Ather Energy has secured a significant funding boost of ₹286 crore (USD 34 million) from its founders, Tarun Mehta and Swapnil Jain, and Stride Ventures. This funding is poised to play a crucial role in Ather’s expansion plans and product development efforts.
Details of the Funding
The funding was raised through a combination of bonds and share sales. The founders contributed ₹86 crore through Series F compulsorily convertible preference shares, while Stride Ventures financed ₹200 crore via Series C3 debentures. This strategic investment is expected to enhance Ather’s ability to scale its operations and bring new products to market.
New Product Launch: Ather Rizta
Earlier this year, Ather Energy unveiled its new electric scooter model, the Rizta, during an event on Ather Community Day in Bengaluru. Priced at ₹1,09,999 (ex-showroom Bengaluru), the Rizta is designed to cater to family needs, marking a shift from Ather’s previous target markets. The new model aims to build on the success of the Ather 450, positioning the company strongly in the electric two-wheeler segment.
CEO’s Vision and Market Position
CEO Tarun Mehta expressed confidence in the Rizta’s potential, suggesting it could surpass the success of previous models. “These enhancements brought by the new Rizta model have the possibility of being even more successful than before,” he told Bloomberg. Mehta believes this will enable Ather to expand aggressively and continue developing innovative products and services.
Strategic Importance of the Investment
The investment comes at a critical time for Ather as it faces increasing competition in the EV market. The funds will be used to boost production capacity, diversify product offerings, and potentially explore new acquisitions both domestically and internationally. This aligns with Ather’s vision of promoting electric mobility in India.
Investor Confidence and Support
The ₹200 crore investment from Stride Ventures reflects strong investor confidence in Ather’s business model and growth potential. Stride Ventures not only provides financial support but also offers strategic guidance and industry expertise, which is expected to fuel further growth and innovation for Ather.
Founders’ Commitment
The additional investment from founders Tarun Mehta and Swapnil Jain underscores their continued commitment to Ather’s vision and goals. Their willingness to reinvest in the company signals strong belief in Ather’s potential to lead India’s electric mobility revolution, sending a positive message to other investors about the company’s stability and growth prospects.
With the new funding, Ather Energy plans to accelerate its growth by scaling up production, enhancing research and development, and expanding its sales and service network across India. The company’s strategy remains centered on continuous innovation and customer satisfaction.
Conclusion
Ather Energy’s recent funding success marks a pivotal milestone in its journey towards becoming a leading player in the electric vehicle industry. The support from its founders and Stride Ventures not only provides the necessary financial backing but also reinforces confidence in Ather’s vision and strategy. As the EV market in India continues to grow, Ather’s proactive approach to securing funding and launching new products positions it well to capitalize on the increasing demand for sustainable transportation solutions. With a solid foundation and ambitious plans, Ather Energy is set to drive forward the electric mobility revolution in India.
