[TusharK]

Flipkart co-founder, Sachin Bansal, has sold his remaining 7.5% stake in Ather Energy to Hero MotoCorp and Zerodha co-founder Nikhil Kamath.



Bansal was among the first investors in the Bangalore-based electric 2-wheeler startup. He had invested around Rs 400 crore along with Hero MotoCorp; among other investors.

Bansal sold his stake in Ather to Hero MotoCorp at an inferred valuation of Rs 5,636 crore last December. It remains the largest shareholder. The remaining 5% stake worth Rs 282 crore was sold to Kamath.

Ather Energy, which competes with brands like Bajaj Auto, TVS and Ola Electric, recently raised Rs 286 crore from its founders and Stride Ventures. The company is also looking to raise around Rs 750 crore from new and existing investors. In September 2023, the company raised Rs 900 crore from Hero MotoCorp and GIC through a rights issue.

Source: ET Auto

Link to Team-BHP News

[Rohitthebest]

Terrific product and good investment.
No doubts that he got a superb return on his investment and we have a worthy product. We've been using 450X for almost two years now, no complaints so far and amazing savings of time and money both. Hope it moves from strength to strength after Hero investment.

[sri_tesla]

Originally Posted by TusharK

Flipkart co-founder, Sachin Bansal, has sold his remaining 7.5% stake in Ather Energy to Hero MotoCorp and Zerodha co-founder Nikhil Kamath.

Bansal was among the first investors in the Bangalore-based electric 2-wheeler startup. He had invested around Rs 400 crore along with Hero MotoCorp; among other investors.

Bansal sold his stake in Ather to Hero MotoCorp at an inferred valuation of Rs 5,636 crore last December. It remains the largest shareholder. The remaining 5% stake worth Rs 282 crore was sold to Kamath.

So, Sachin Bansal invested Rs 400 crore and holds a 7.5% stake which is now sold to other investors at a valuation of Rs 5,635 crores. That means he got Rs 422 crores on his investment of Rs 400 crores (5635 x 0.075 = Rs 422 crores)? If that's correct, it must be one of the worst returns ever. Inflation-adjusted it's a net negative by a significant amount.

[SmartCat]

Originally Posted by sri_tesla

So, Sachin Bansal invested Rs 400 crore and holds a 7.5% stake which is now sold to other investors at a valuation of Rs 5,635 crores. That means he got Rs 422 crores on his investment of Rs 400 crores (5635 x 0.075 = Rs 422 crores)? If that's correct, it must be one of the worst returns ever. Inflation-adjusted it's a net negative by a significant amount.

wow, nice catch.

- Total investment over the decade: Rs. 400 cr
- The article says "remaining 7.5%" sale resulted in accrual of Rs. 422 cr

This means he had held a percentage higher than 7.5% in Ather Energy. After some heavy Googling, I found that Sachin Bansal had owned 20% of Ather Energy in 2020.

So, between 2020 and 2024, he had sold 12.5% of Ather Energy, and he would have collected a certain unknown amount. So his net returns on his Rs.400 cr investment will be higher (Rs.422 cr + proceeds from 12.5% stake sale)

It would still be relatively low return on investment, because Sachin Bansal seems to have participated in multiple rounds of fund raising at higher and higher prices. So his "average buy price" was much higher than what was originally in 2014.

[sri_tesla]

Originally Posted by SmartCat

So, between 2020 and 2024, he had sold 12.5% of Ather Energy, and he would have collected a certain unknown amount. So his net returns on his Rs.400 cr investment will be higher (Rs.422 cr + proceeds from 12.5% stake sale)

It would still be relatively low return on investment, because Sachin Bansal seems to have participated in multiple rounds of fund raising at higher and higher prices. So his "average buy price" was much higher than what was originally in 2014.

I am not sure how these startup valuations and ownerships work, but as per that article in 2020, Ather was valued at only Rs 1,405 crores while the current valuation is Rs 5,636 crores which is 4 times Rs 1,405 crores. I believe, the existing investors who did not pump more money in successive rounds might have agreed to reduce their stake albeit at higher valuations. Also, I went through all the articles related to Ather from 2020 on Fintrackr and I don't see any information about Sachin Bansal selling his Ather shares before today.

[dipen]

It could also be possible that Sachin owned 20 % in 2020, but due to multiple rounds of fund raising between 2020 and now, the dilution may have happened and his overall stake % reducing.

Below is a an Apr article around his % holding, valuation math and the likes.

https://economictimes.indiatimes.com...7.cms?from=mdr

I think, he is also an investor in Ola electric.