Ather Energy Is Now India’s Latest Unicorn, Secures $71 Mn Fresh Funds

Manufacturer of electric two-wheelers Ather Energy is said to have secured funding from National Investment and Infrastructure Fund (NIIF), an existing investor, totaling INR 600 Cr ($71 Mn), at a post-money valuation of $1.3 Bn.

This fresh capital raise comes after its prior debt financing of INR 60 Cr (about $7.1 Mn) through InnoVen Capital’s non-convertible debentures (NCDs).

Ever since the end of 2023, the company has raised money in numerous rounds. Through a combination of loan and equity, mostly from venture debt and co-founders, Ather raised Rs 286 crore ($34 million) in May of this year.

In addition to the over Rs 200 crore funded through debentures by venture debt firm Stride Ventures, Ather’s co-founders Tarun Sanjay Mehta and Swapnil Jain each contributed Rs 43.28 crore through Series F preferred shares.

Hero MotoCorp, the company’s current stakeholder, declared in September of last year that its board had approved an investment of Rs 550 crore in Ather Energy.

NIIF joined the $128 million Series E round of the EV startup, joining Hero MotoCorp, a previous investment, and other investors.

After Bhavish Agarwal’s AI business Krutim AI, financial SaaS startup Perfios, and ride-hailing service Rapido, Ather is the most recent member of India’s unicorn club this year.

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Ather Energy, established in 2013 by Tarun Mehta and Swapnil Jainy, is a prominent participant in the electric two-wheeler industry in India. In addition to producing and maintaining electric two-wheelers, the business manages and stores electric power as well as provides other ancillary services. It also runs its own infrastructure for charging these vehicles.

It’s also important to remember that the EV manufacturer hopes to go public by the end of 2024 at a valuation of $2 billion (around 16600 Cr). The startup became a public company last month in preparation for the launch of its initial public offering (IPO).

According to Hero MotoCorp’s annual report, Ather Energy’s net loss increased by 22.5% to INR 1,059.7 Cr in FY24 from INR 864.5 Cr in FY23.

Nonetheless, the startup’s operating income increased by 0.3% to INR 1,789.10 Cr in the reviewed year from INR 1,783.60 Cr in FY23.

Last month, Rapido, a Bengaluru-based company, raised $120 million (about INR 1,000 crore) in a Series E investment round through three of its linked entities, Setu AIF Trust, Konark Trust, and MMPL Trust, at a post-money valuation of little over $1 billion. The funding came from WestBridge Capital, an existing investor.