Ather Energy raises $50 million in new funding round

• ByStartupStory     |    October 18, 2022

According to regulatory records obtained through business intelligence platform Tofler, electric scooter manufacturer Ather Energy has secured $50 million, with existing backer Caladium Investment serving as the lead investor. 

The newest fundraising round included participation from Herald Square Ventures as well. After the round, insiders with knowledge of the situation estimated the company’s valuation to be between $700 and $800 million. 

A source claims that the most recent round is an expansion of its $128 million fundraise in May, which was spearheaded by Hero MotoCorp and India’s National Investment and Infrastructure Fund (NIIF), a sovereign wealth fund.

The company will increase its manufacturing capacity with the new funds in light of the year’s increased demand for electric automobiles. It is prepared to begin producing at its second manufacturing plant, which has the potential to produce 400,000 units annually. 

According to sources, the company’s projected annual revenue for FY23 will exceed Rs 1,000 crore. The income for FY22 was Rs. 408 crore, which is more than twice as much as the revenue from the year before. 

According to a source, the corporation has already begun discussions with several stakeholders about opening a third manufacturing location. In July, the business introduced a new version of its 450x scooter with a larger battery.

When approached, Ather Energy declined to respond.The most recent funding comes as competition for electric two-wheelers is heating up. On October 7, Hero MotoCorp, the largest investor in Ather, launched its first electric scooter. 

Industry insiders claim that Ola Electric will introduce another scooter on October 22 for less than Rs 80,000. Ola Electric refrained from commenting on the situation. 

Companies that manufacture electric vehicles are also under fire for attempting to receive the Rs 10,000 crore Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME)-II subsidy without obtaining the necessary quantity of components domestically. 

On October 7, it was reported that the government had issued a notice to EV two-wheeler manufacturers Hero Electric and Okinawa for failing to adhere to the necessary localization standards.

After more than a dozen cars caught fire throughout the summer, the government is also requiring EV two-wheelers to undergo stricter testing criteria. 

When ramping up manufacturing for its electric scooters, Ather Energy co-founder Tarun Mehta told ET in May that the business anticipated to secure two fundraising rounds this year. According to Mehta, these two fundraising rounds will likely reduce the valuation gap between the company and its competitor Ola Electric. 

Ather is not yet a unicorn, meaning a privately owned company with a valuation of $1 billion or more, but Ola Electric is valued at $5 billion.

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