Ather Energy has allotted shares and warrants as part of a ₹1,200 crore fundraise, an outcome that will bring Hero MotoCorp's shareholding in the electric two-wheeler maker to nearly 30%.

Under the arrangement, Hero MotoCorp is investing nearly ₹1,000 crore through convertible warrants, while the India-Japan Fund has subscribed to shares worth approximately ₹200 crore. Convertible warrants give the holder the right to subscribe to equity shares at a later date, typically upon conversion.

The fundraise, reported by CNBC-TV18, deepens the long-standing strategic relationship between Ather Energy and Hero MotoCorp, one of India's largest two-wheeler manufacturers and an early backer of the Bengaluru-based electric vehicle startup, which listed on the stock exchanges in 2024. Hero MotoCorp has been an investor in Ather Energy since the startup's early years, and a stake approaching 30% would make it by far the largest shareholder in the company.

Ather Energy is one of India's prominent electric scooter manufacturers, competing in the country's growing electric two-wheeler market, where it rivals Bajaj Auto's Chetak and TVS Motor's iQube, alongside Ola Electric. The fresh capital comes as electric two-wheelers continue to expand their share of India's overall two-wheeler market, supported by government incentives and demand for cleaner urban mobility, and gives Ather additional resources to fund product development and capacity as competition in the segment intensifies.