EV maker Ather Energy raises $128M in funding led by NIIFL, Hero MotoCorp

Bengaluru-based electric scooter maker Ather Energy today announced it has raised $128 million in a new financing round led by the National Investment and Infrastructure Fund Limited’s (NIIFL) Strategic Opportunities Fund (SOF), Hero MotoCorp, and other additional investors. Hero MotoCorp is a returning investor in the EV startup.

"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. We would also like to thank Hero MotoCorp, our long-term investor and strategic partner who continues to support our growth," said Tarun Mehta, Co-founder & CEO of Ather Energy.

With the help of the Series E round, The EV startup will focus on expanding its manufacturing facilities, R&D activities, charging infrastructure, and expanding its retail network.

"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," Tarun said.

Tarun Mehta co-founded Ather with Swapnil Jain in 2013. Since then, It has expanded to 32 cities, including Bengaluru, Chennai, Delhi, Hyderabad, Pune, Jaipur, Kochi, Ahmedabad, Mumbai, Mysore, Guwahati, and Hubli.

According to the company's statement, In April 2022, Ather Energy delivered 3,779 electric scooters to its customers. With a presence in 32 cities and 38 experience centers, The EV startup aims to expand to 150 experience centers in 100 cities by 2023. "The switch to electric is inevitable and FY 22’ was the turning point for electric two-wheeler adoption in India," Tarun adds.

This will be NIIFL’s first direct investment in the manufacturing sector and in electric mobility, both areas of national importance given India’s green mission and decarbonization goals. The investment enables NIIFL to play a role in mainstreaming the electric two-wheeler sector in India at an early stage of development and to support first-generation local entrepreneurs in building a new product with a high level of indigenization, the statement said.

“Aligned to India’s green transition mission, the electric two-wheeler industry is expected to grow significantly in the coming years," Padmanabh Sinha, Executive Director & Chief Investment Officer - NIIFL, said.

"Ather Energy has indigenously designed and developed products with a high degree of domestic sourcing of components and adaptability to Indian conditions. 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," Padmanabh adds.

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