Nikhil Kamath, the brains behind Zerodha, India’s premier stock brokerage, is gearing up to infuse capital into Ather Energy, Bengaluru’s electric scooter prodigy backed by Tiger Global, according to a media report.
What Happened? Details about Kamath’s investment remain under wraps, but insiders have told the Economic Times that this might happen through a secondary share sale. Unlike primary investments that directly benefit the company, secondary share sales involve existing stakeholders offloading their shares to newcomers.
While the exact channel Kamath will employ for this investment remains uncertain, the deal is reportedly on the brink of finalisation. Kamath’s investment portfolio typically managed through Kamath Associates and NKSquared, has been bullish on domestic startups.
Notably, he recently poured ₹100 crore (around $12 million) into e-gaming sensation, Nazara Technologies. His other ventures span across sectors, from the online meat retailer Licious to the chic Third Wave Coffee Roasters.
An intriguing choice: However, Kamath’s move towards Ather is intriguing. Despite market headwinds, Ather is ambitiously broadening its horizons, challenging the dominant Ola Electric. As per Vahan, Ola Electric’s sales in August towered at 17,389 units, dwarfing Ather’s 6,835.
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Ather’s valuation stood at $739 million during its last fundraising in October 2022. However, 2023 saw the company retracting its $250 million fundraising aspirations, pegged at a $1.3 billion valuation.
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