Hero MotoCorp Ltd, India’s largest two-wheeler maker and the biggest shareholder in Ather Energy, has approved an additional investment of up to Rs 1,000 crore (about $104 million) in the Bengaluru-based electric scooter maker.
The investment will be made through a preferential allotment of equity shares or other securities convertible into equity, including compulsorily convertible preference shares and warrants, subject to regulatory and shareholder approvals.
The transaction is expected to be completed within 15 days of Ather receiving the required approvals.
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather manufactures electric scooters and operates a fast-charging network under the Ather Grid brand. The company currently sells the Rizta family scooter and the 450 series of performance scooters, while continuing to expand its retail footprint and charging infrastructure as competition intensifies in India's electric two-wheeler market.
Hero MotoCorp currently holds a 29.48% stake in Ather on a fully diluted basis. The company said its post-investment stake will depend on the pricing of the preferential issue and any subsequent issuances of securities approved by Ather's board.
The investment comes as Ather continues to scale its operations following its initial public offering (IPO). The electric vehicle-maker reported revenue of Rs 3,671.76 crore for the financial year ended March 2026, compared with Rs 2,255 crore in FY25 and Rs 1,753.8 crore in FY24, it said.
Hero MotoCorp said the transaction involves subscription to additional securities of Ather. The Munjal family-controlled automaker first invested in Ather in 2016 and has since emerged as the company's largest shareholder. In December 2023, it invested Rs 140 crore in Ather Energy, following a Rs 550-crore investment three months earlier.
The investment is in line with Hero MotoCorp's strategy of backing emerging mobility technologies alongside its core internal combustion engine business. Besides Ather, the company has invested in electric mobility startup Euler Motors and has also been expanding its own electric vehicle business under the Vida brand.
