Ather Energy has announced a major fundraising plan worth up to ₹2,500 crore as it prepares for the next stage of growth in India’s electric vehicle (EV) market. The company will use the fresh funds to expand its manufacturing capacity, launch new products and strengthen its position in the fast-growing electric two-wheeler segment.
The announcement comes at a time when Ather is reporting strong sales growth, higher revenue and lower losses. Investors also reacted positively to the news, pushing the company’s share price to a new 52-week high.
Hero MotoCorp leads fresh investment in Ather Energy
Ather’s board has approved a fundraising plan that includes a Qualified Institutions Placement (QIP) of up to ₹1,500 crore and a ₹1,200 crore preferential issue.
Hero MotoCorp will invest nearly ₹960 crore by subscribing to more than 76 lakh convertible warrants priced at ₹1,260 each. After the investment, Hero MotoCorp’s stake in Ather Energy will increase from 29.48% to 30.68%, making it an even stronger strategic partner.
The India-Japan Fund (IJF), backed by the Government of India and the Japan Bank for International Cooperation, will invest around ₹200 crore by buying more than 16 lakh equity shares at ₹1,230 each. This investment will give the fund a 6.02% stake in Ather.
Ather’s co-founders, Tarun Mehta and Swapnil Jain, are also investing nearly ₹20 crore each by subscribing to convertible warrants, showing their confidence in the company’s future.
The fundraising plan received a positive response from the stock market. Ather’s share price jumped more than 8% to reach a new 52-week high of ₹1,242 on the NSE. The stock has grown sharply since its IPO in May 2025, reflecting growing investor confidence.
The company has also shown strong financial improvement. In the second quarter of FY26, Ather’s operating revenue increased by 54% year-on-year to ₹899 crore. During the same period, its net loss reduced to ₹157 crore, showing steady progress towards profitability.
Sales have also grown quickly. Ather sold more than 31,000 electric scooters in June 2026, recording around 95% year-on-year growth. This strong demand helped the company increase its market share to 18.6% in the first quarter of FY27.
New factory and affordable scooters to support future growth
To meet rising demand, Ather is building its new manufacturing facility, called Factory 3.0, in the AURIC industrial city at Chhatrapati Sambhajinagar, Maharashtra.
The factory is spread across 100 acres and will add an initial production capacity of five lakh electric two-wheelers every year. Once fully completed, Ather’s total annual production capacity is expected to reach around 1.42 million units.
The company had originally planned to start commercial production in July 2026. However, the timeline has now been pushed to October 2026 after environmental clearance approvals took longer than expected.
Ather is also preparing to enter the affordable electric scooter segment. The company is expected to launch the EL01 on its new EL platform during Ather Community Day on August 29, 2026.
The EL01 is likely to be Ather’s most affordable scooter, with an expected price between ₹1 lakh and ₹1.25 lakh. It will use a steel frame, drum brakes and a belt-drive system to reduce production costs. With this model, Ather wants to reach more family buyers and customers looking for budget-friendly electric scooters.
The company is already seeing good demand for its family scooter, Rizta, and is also working on a new electric motorcycle platform called Zenith.
Ather has also decided not to take benefits under the government’s Production Linked Incentive (PLI) scheme. According to the company’s leadership, this approach has helped it focus on better pricing, cost control and long-term profitability.
Strong growth puts Ather in a better position in the EV market
Ather Energy’s latest fundraising and expansion plans come at a time when competition in India’s electric scooter market is becoming stronger.
The company has improved its position by increasing production, launching new products and improving its financial performance. Industry trends also show that established companies like Ather, TVS Motor, Bajaj Auto and Hero MotoCorp are strengthening their presence in the EV market through steady growth and new product launches.
With fresh funding, expanding manufacturing capacity and a wider product lineup, Ather is preparing for its next phase of growth. The company now aims to serve more customers, increase production and move closer to becoming a profitable electric vehicle manufacturer in India.