Hero’s investment in Ather is one of the best examples of a strategic investments- an investment that a corporation makes in a young company that can bring something of value to the corporation itself🤔
With a 37% pre IPO stake in Ather, Hero is the largest shareholder in Ather.
There are great synergies between the two brands 🤝
Hero has the power of dristriburion, marketing muscle, brand salience and money in the bank 💪
On the other hand, Ather a pioneer in electric two wheelers space and has been at it for over a decade.
They genuinely have a better product in the market 🛵
Though Hero has a separate electric two wheeler brand (Vida)~ it makes sense for them to come together under one entity to take on the more aggressive players pushing an average product 😞
By the way, did you know that, 25% of Ather’s fresh issue (750 cr), is earmarked for R&D and is comparable to Hero’s FY24 R&D budget of 826 cr. 😅
Ather loves engineering, Hero loves sales. They will make a good pair 😁
What say?
Data source : Mint
