Ather Energy’s board approved the incorporation of a Wholly Owned Subsidiary (WOS) to operate as a Corporate Agent for insurance policies. This strategic move allows Ather Energy to offer and facilitate insurance, diversifying its revenue streams and leveraging its existing customer base. The initial investment is planned up to INR 8 Crores. This decision was made at a board meeting held on December 19, 2025.
Insurance Business Expansion
Ather Energy is set to expand its business operations by incorporating a Wholly Owned Subsidiary (WOS) focused on offering and facilitating insurance policies. This move allows the company to tap into the insurance sector as a Corporate Agent.
Strategic Rationale
The primary goal of establishing the WOS is to diversify Ather Energy’s revenue streams and leverage its current customer base. By offering insurance policies, the company aims to create recurring revenue opportunities. The WOS will operate as a company limited by shares, compliant with the Companies Act, 2013.
Expected Benefits
The incorporation of the WOS is projected to yield several key benefits:
- Diversification of company revenue streams.
- Increased insurance attach rates.
- Improved customer experience through seamless cross-selling and servicing for both customers and retail partners.
Investment and Approvals
The estimated initial investment in the WOS is up to INR 8 Crores. Further investments will depend on the scale-up of operations. The company needs to obtain approvals from both the Registrar of Companies (ROC) and the Insurance Regulatory and Development Authority of India (IRDAI) to proceed with the incorporation.
Financial Details
Ather Energy will subscribe to 100% of the initial paid-up share capital of the WOS in cash. The shares will be subscribed at a face value of INR 10 per share, ensuring 100% control by Ather Energy (Wholly Owned Subsidiary).
Source: BSE