Bangalore, the India-based electric two-wheeler maker Ather Energy, raised USD 128 million in Series E funding. The round took place on May 12, 2022. Indian government’s sovereign wealth fund, the National Investment and Infrastructure Fund (NIIF), led the funding for Ather. Meanwhile, existing investor Hero MotoCorp also backed the company.
Purpose of Funding for Ather Energy
Ather Energy plans to use the funding to ramp up its supply chain capabilities. It wants to scale from 5,000-6,000 units per month to over 30,000 units. The electric two-wheeler company seeks to expand its manufacturing facilities.
Besides, it will invest in research and development and grow its retail network.
What the founder has to say
“This is a double validation of sorts for us. Not just as the first EV company backed by the sovereign fund but also as it is our first significant institutional capital raise after a long gap,” said Tarun Mehta, co-founder and CEO of Ather Energy.
“We have been busy executing all these years, have run a very tight ship since commercial launch in 2018, and it was now time to fix our liquidity to meet our priorities for the coming year. We want to be a ‘no-brainer decision’ for customers. Safety has to be a given for any vehicle and continuing our focus on quality, we are keen to emerge as the consistent and reliable brand in our sector,” he further added.
“We were keen to get NIIF on board for the longest time and are very happy with the quantum of their investment too. Being a sovereign fund, they are far more patient, understand long-term value creation and are driven by more secular trends. The EV industry has changed dramatically over the last two years, and we need to invest to fuel growth a little ahead of time now. We will need to raise more capital, and I see a capital raise once again in the next two years. Given our pace of growth, we want to stay ahead of the curve and will need to raise more money,” Mehta added.
What the investor has to say
“Aligned to India’s green transition mission, the electric two-wheeler industry is expected to grow significantly in the coming years. Ather Energy has indigenously designed and developed products with a high degree of domestic components sourcing 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, a robust IP portfolio, and 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 of NIIF.
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