India-based electric bike manufacturer Ather Energy received $31m in series B funding from motorcycle producer Hero MotoCorp yesterday in return for a stake of up to 30%, Tech in Asia reported.
The cash will be provided across two tranches, with Ather having already received the initial $27m investment.
Founded in 2013, Ather Energy designs and produces electric scooters, such as its flagship S340 product. The funding will support the launch of the S340 and accelerate development of a charging network infrastructure.
The company hopes to launch the S340 in the Indian cities of Bangalore, Chennai and Prune – all markets with a significant user base of motorcycles – and is targeting 10,000 sales within the first year.
Ather raised $12m in series A funding from fund manager Tiger Global in May 2015. Sachin and Binny Bansal, co-founders of e-commerce company Flipkart, led the company’s $1m seed round in 2014 with participation from Raju Venkatraman, CEO of healthcare company Medall.
Pawan Munjal, chief executive of Hero MotoCorp, said: “As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer, and the industry.
“Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities.”