[Funding News] Ather Becomes Unicorn with $71 Mn Funding from govt’s NIIF

Ather Energy, a manufacturer of electric scooters, has achieved unicorn status by securing an investment of Rs 600 crore ($71 million) from its existing investor, the National Investment and Infrastructure Fund (NIIF).

Following the investment, Ather has been assessed at a valuation of $1.3 billion, equivalent to around Rs 10,900 crore.

This is the country's fourth unicorn of the year and the second one in the mobility sector. The previous unicorn in this sector was Rapido, which secured $120 million in funding from WestBridge Capital, resulting in a post-money valuation of $1 billion, as reported by ET on July 29.

In 2022, the electric scooter manufacturer was valued at approximately $740-750 million. However, Hero MotoCorp, the company's major supporter with a 40% stake, invested Rs 124 crore in the company in June through a secondary deal, implying a valuation of $671 million (Rs 5,636 crore).

Ather's most recent investment round coincides with Ola Electric's stock experiencing consecutive upper circuit limits in two trading sessions following its debut on Friday.

Read also - Halden Raises Rs 5 Cr Funding Round from Prajay Advisors

The market capitalization of the company on the BSE is Rs 48,258.89 crore, which is equivalent to $5.7 billion. This is higher than the previous private estimate of $5.4 billion. Public market investors perceive Ola Electric as a representative of the electric vehicle industry's potential for growth, according to experts.

Ather became the initial investment of NIIF, a new-age corporation, following its decision to withdraw from its intended investment in the omnichannel retailer FirstCry.

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