Electric vehicle

Ather Energy Joins Unicorn Club After Securing $71 Million in Funding from NIIF

• ByStartupStory     |    August 13, 2024

Electric two-wheeler maker Ather Energy has officially entered the coveted unicorn club after raising Rs 600 crore (approximately $71 million) from its existing investor, the National Investment and Infrastructure Fund (NIIF). The latest funding round has propelled Ather Energy’s valuation to an impressive $1.3 billion, or about Rs 10,900 crore, according to sources familiar with the matter.

This significant milestone for Ather Energy comes on the heels of a surge in activity within India’s mobility space. Recently, Ola Electric made a strong debut on the country’s stock exchanges, and Hyderabad-based ride-hailing app Rapido also achieved unicorn status last month.

“Ather Energy’s recent success is a testament to the growing interest and investment in India’s electric vehicle (EV) sector,” said an industry expert who requested anonymity.

The Economic Times first reported the funding news. When contacted, Ather Energy declined to comment on the development, and an email sent to NIIF did not elicit an immediate response.

According to Tracxn, NIIF, a sovereign wealth fund, initially invested in Ather Energy in 2022. The latest investment further strengthens NIIF’s commitment to supporting the growth of India’s EV ecosystem.

In addition to the new equity funding, Ather Energy had also secured Rs 60 crore in debt funding from InnoVen Capital India Fund in July. The company is now gearing up for an initial public offering (IPO) and transitioned from a private company to a public limited company in June 2024. To facilitate the IPO process, Ather has reportedly appointed HSBC Holdings, Nomura Holdings, and JPMorgan Chase & Co. as its advisors.

“Ather Energy is well-positioned to leverage the growing demand for electric vehicles in India. With this funding, the company can accelerate its growth and innovation,” stated a source close to the company.

Hero MotoCorp, a key investor in Ather Energy, increased its stake in the startup in June by purchasing an additional 2.2% stake for Rs 124 crore. This move reflects Hero MotoCorp’s confidence in Ather’s potential and future growth prospects.

Ather Energy has seen remarkable revenue growth, reporting Rs 1,806 crore in revenue for FY22-23, a substantial increase from Rs 413.9 crore in the previous fiscal year. However, the company’s losses have also widened, reaching Rs 864.5 crore in FY22-23, compared to Rs 344.1 crore in FY21-22, according to Tracxn data.

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