Nikhil Kamath Takes Bite Out Of Sachin Bansal's Stake In This Hero MotoCorp-Backed Company

Electric two-wheeler maker Ather Energy is reportedly in discussions to secure a substantial round of funding through a combination of primary and secondary share sales.

What Happened: Flipkart co-founder Sachin Bansal has sold a significant portion of his stake in the company to Zerodha co-founder Nikhil Kamath, Economic Times reported, citing sources. There’s speculation that Kamath might further acquire Bansal’s remaining stake.

The company is also in the process of finalising plans to raise $75 million-$90 million (about ₹750 crore) in primary funding from existing investors. Talks with potential new investors are reportedly also underway.

It’s expected that the round may be led by an existing investor, potentially valuing Ather Energy between $850 million and $1 billion (₹7,084 crore-₹8,334 crore). If the company achieves a valuation of $1 billion during this funding round, it would join the ranks of unicorns, startups valued at $1 billion or more.

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Big Names: Sachin Bansal, who was the first angel investor in Ather Energy, held a 10.7% stake in the company. Meanwhile, Binny Bansal, co-founder of Flipkart, also holds a 1% stake. Speaking with the business pulication, Kamath expressed his confidence in Ather Energy, stating that it would be among his largest private equity investments.

Ather Energy’s recent fundraising efforts come after postponing plans last year due to unfavorable market conditions. Instead, it raised ₹900 crore in September 2023 from Hero MotoCorp and GIC through a rights issue.

Notably, Hero MotoCorp increased its stake to 39.7% in December. Ather Energy is yet to disclose details of the shares sold during the December funding.

Ather is also reportedly gearing up for an IPO as early as June, aiming to raise up to $400 million (around ₹3,300 crore) at a valuation of about $2 billion (₹16,400 crore).

Amidst a resurgence in demand for ride-hailing and electric scooters post-pandemic, mobility companies are witnessing heightened investor interest. Bengaluru-based Rapido is seeking around $100 million in new funding. Additionally, Ola Electric, a competitor to Ather Energy, also filed for an IPO in December 2023, aiming to raise up to ₹5,500 crore at an expected valuation of $7 billion-$8 billion (₹58,339 crore-₹66,673 crore).

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