Ather Closes Series E Fund Raise With $128 Million Round From NIIFL, SOF, Hero Moto

Bengaluru based Ather Energy, a leading electric two-wheeler company in India, has confirmed the completion of its Series E round of funding with signing of investment agreements amounting to $128 million with National Investment and Infrastructure Fund Limited’s (NIIFL) Strategic Opportunities Fund (SOF), and Hero MotoCorp, a significant shareholder of Ather, and additional investors. Details regarding valuation and post funding stakes have not been shared by the firm.

Ather Energy plans to use the funding to expand manufacturing facilities, invest in research and development, charging infrastructure and to grow its retail network.

Before this round, Hero Motocorp had a 34.8% stake in Ather Energy. The last funding raised by Ather Energy was in November 2020, when it raised $35 million in a Series D round led by Sachin Bansal, the former co-founder of Flipkart.

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After a strong start to the year, the company registered the highest ever monthly sales in April 2022 delivering 3,779 units to customers. Booking orders for Ather Energy’s flagship product, the Ather 450X is growing at 25% quarter-on-quarter. Ather Energy already has a robust retail sales network across the country, with presence in 32 cities with 38 Experience Centres and aims to expand to 150 Experience Centres in 100 cities by 2023.

From Left, Swapnil Jain, Co-Founder and CFO, And Tarun Mehta, Co-Founder and CEO

Commenting on the investment, Tarun Mehta, CEO, Ather Energy, said “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. We would also like to thank Hero MotoCorp, our long-term investor and strategic partner who continues to support our growth.”

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 decarbonisation goals. This will be SOF’s fourth investment following its investments in two infrastructure financing NBFCs (Aseem Infrastructure Finance and NIIF IFL) and a national healthcare chain (Manipal Hospitals).

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Padmanabh Sinha, Executive Director & Chief Investment Officer – NIIFL, said, “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 sourcing of components and adaptability to Indian conditions. We are also impressed with Ather Energy’s partnerships for component manufacturing, charging infrastructure and customer financing.”