Hero MotoCorp is all set to invest up to Rs 205 crore in Ather Energy. The company is a Bangalore-based domestic hardware start-up that is working on building India’s first ‘smart’ scooter.
The statement released by the company said “The Board of Directors of the Company, in its meeting held on October 26, approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26 per cent to 30 per cent shareholding in Ather Energy Private Limited.”
It further adds, “Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. Hero MotoCorp intends to enhance its participation in the Electric vehicle (EV) space by pursuing its internal EV program in addition to partnering with Ather.”
Just last month, when being asked about the delay of the smart scooter launch Ather said it was facing completion challenges. Tarun Mehta, co-founder of Ather was quoted saying, "We can't ship a product as a start-up. From a system perspective, we have to be a very mature company. Recalls can be very expensive for us. We want to reduce chances of that to as close to zero as possible. There are still many productisation challenges (those related to cost, packaging, manufacturability, integration). We realised this later. Hence the delay.”
From the looks of it, it appears as if both companies are likely to benefit from this new investment. Hero will get to “enhance its participation in the electric vehicle space” while, Ather will receive the financial back up it needed.
