Electric scooter manufacture company Ather Energy has raised $128 million in series E funding round from National Investment and Infrastructure Fund (NIIF), the Indian government’s sovereign wealth fund and existing investor Hero MotoCorp.
The company plans to use the funds to expand its manufacturing facilities, invest in research and development and its charging infrastructure, and grow its retail network.
It also plans to raise two more rounds in the coming year.
The Bengaluru-based Ather Energy was founded in 2013 by Tarun Mehta and Swapnil Jain, it is a India’s leading electric two wheeler manufacturer company.
The company claims that after a strong start to the year, it recorded its highest ever monthly sales in April 2022, delivering 3,779 units to customers. And booking orders for the company are growing at 450x 25 percent quarter-on-quarter.
Currently, Ather is present in 32 cities with 38 experience centers and aims to expand to 150 experience centers across 100 Indian cities by 2023.
“The switch to electric is inevitable and FY 22’ was the turning point for electric two-wheeler adoption in India. We are super excited to have NIIF come on board as an investor. They have been at the forefront of the country’s green transition through their investments and initiatives, and we look forward to our association”, said, Tarun Mehta, CEO, Ather Energy.
“We would also like to thank Hero MotoCorp, our long-term investor and strategic partner who continues to support our growth. The current round of investment will help us enhance capacities across the board, bring additional focus on new platforms, expand into new geographies, expand our fast-charging network and double down on the reputation we’ve built for making a product that’s high on quality”, he added.
The new funding comes amid tough times for Ather as more than two dozen electric scooters have caught fire since March and companies such as Ola Electric, PureEV and Okinawa. Mehta said since then that they will recall more than 7,000 vehicles between them and he added these incidents have not dampened Ather’s sales.
“We are excited to partner with Ather Energy’s founders and management team who have developed deep expertise in the industry, developed a robust IP portfolio, and built strong manufacturing and distribution capabilities. We are also impressed with Ather Energy’s partnerships for component manufacturing, charging infrastructure and customer financing”, said, Padmanabh Sinha, Executive Director & Chief Investment Officer – NIIFL.
In November 2020, Ather Energy had raised $35 million in its Series D funding round from Flipkart co-founder Sachin Bansal’s investment of $23 million. Earlier this year Hero MotoCorp invested Rs 420 crore in Ather Energy.
About Ather Energy
Ather Energy was started in 2013 by Tarun Mehta and Swapnil Jain, two engineering graduates straight out of college with the audacity to dream and challenge the well-established Internal Combustion Engine (ICE) and replace it with an electric drive. They built India’s first smart and connected electric scooters, the Ather 450 product line because we believe that’s where the future of personal mobility is headed.
Ather is one of the few start-ups in India, specifically within the automotive industry, to have products & services that are an amalgamation of clean design & engineering – Hardware & Software. Today, their product offerings include the Ather 450X &Ather 450 Plus, Public & private charging Infrastructure, and innovative ownership plans.
They are also building a complete ecosystem for India’s electric vehicles – powered by indigenous design and all locally manufactured. They are expanding our footprint across the country and will be in over 40 cities in the coming months.