Ather Energy has secured INR 600 crore (USD 71 million) in funding from the National Investment and Infrastructure Fund, elevating its valuation to USD 1.3 billion. This investment positions Ather as India’s fourth unicorn in 2023. Amidst competition from entities such as Ola Electric, the company plans to enhance its market presence through the introduction of new products and strengthening its manufacturing capabilities.
Electric scooter manufacturer Ather Energy has joined the unicorn club after securing INR 600 crore (USD 71 million) in funding from its existing investor, the National Investment and Infrastructure Fund (NIIF). This funding round has boosted Ather’s valuation to approximately INR 10,900 crore (USD 1.3 billion).
This investment marks Ather as the country’s fourth unicorn this year, and the second in the mobility sector following Rapido, which obtained USD 120 million from WestBridge Capital, reaching a valuation of USD 1 billion.
NIIF, an Indian sovereign wealth fund, initially invested in Ather in May 2022. Previously in 2022, Ather was valued between USD 740-750 million. However, in a secondary transaction in June, Hero MotoCorp, holding a 40% stake and being the largest shareholder, invested INR 124 crore, valuing the firm at around USD 671 million (INR 5,636 crore).
Recent developments have seen Ather’s principal competitor, Ola Electric, performing strongly in the stock market since its recent listing. Ola Electric’s market capitalization reached INR 48,258.89 crore (USD 5.7 billion) on the BSE, showcasing robust investor confidence and signalling strong growth prospects for the EV sector.
NIIF completed its investment in Ather with nearly INR 600 crore, successfully closing this funding round. Ather’s spokesperson opted not to comment on this matter, and queries to NIIF did not receive any response by press time.
Additionally, Ather’s strategic focus includes its new family scooter model, the Rizta, which it started delivering recently, holding about a 9% market share in the electric scooter market as per the latest data.
In the backdrop of a challenging environment for late-stage funding and the emergence of new unicorns, Ather’s continuous investments and market strategies illustrate its ambitious plans in the competitive EV market.
