In the world of investments, notable names often make headlines, and this time, it’s Nikhil Kamath, the co-founder of Zerodha, stepping into the spotlight. He is gearing up to become an investor in Ather Energy, an electric vehicle startup that’s been making waves. But what’s the story behind this move?
Kamath’s investment journey has been quite dynamic lately. He recently made a substantial investment in the online gaming company Nazara Technologies. This move boosted his ownership stake in the company to a solid 3.5%. Now, he’s setting his sights on Ather Energy.
Nikhil Kamath’s investment in Ather Energy is part of a secondary share sale, which essentially involves existing shareholders selling their shares. It’s a move that reflects his confidence in the electric vehicle startup’s potential.
But what makes Ather Energy so promising? Well, for starters, the company recently secured a whopping Rs 900 crore in a rights issue. This financial boost came with contributions from major players like Hero MotoCorp and Singapore’s GIC. Hero MotoCorp already holds a significant 33.1% stake in Ather Energy and is planning to invest an additional Rs 550 crore in the company’s rights issue.
Ather Energy is known for its impressive product lineup, featuring the Ather 450X and the Ather 450S. However, it doesn’t plan to stop there. The company is on a mission to diversify its product portfolio and has initiated a $250 million funding round to achieve this goal. This move aligns with Ather Energy’s determination to thrive in the ever-evolving electric vehicle market.
It’s important to note that the electric vehicle industry has seen its share of challenges. Ather Energy faced a setback when government subsidies under the Faster Adoption of Manufacturing of Electric Vehicles (FAME-II) initiative were rolled back in June. This change affected sales, making the investment and support from individuals like Nikhil Kamath even more crucial.
In recent months, Nikhil Kamath has been on an investment spree. In addition to his significant investment through Natco Pharma Limited in the hygiene and wellness company Pee Safe, Kamath’s business secured approval from the SEBI to enter the asset management market. This move led to the launch of products like Zerodha Tax Saver (ELSS), Nifty Large Midcap 250 Indices Fund, and Zerodha Nifty Large Midcap 250 Index Fund (ZN250). These ventures marked Zerodha’s entry into the asset management industry, showcasing Kamath’s diversified investment approach.
As Nikhil Kamath continues to expand his investment portfolio, his foray into Ather Energy demonstrates his commitment to backing innovative ventures that hold promise for the future.
