Bengaluru-based electric scooter manufacturer Ather Energy has reportedly achieved unicorn status after securing $71 million (₹596 crore) in a funding round led by the National Investment and Infrastructure Fund (NIIF).
This investment pushes Ather’s valuation to $1.3 billion, marking a significant milestone in its journey. Although the company has yet to officially confirm the fundraising, various media sources indicate that this latest round has solidified Ather’s position among India’s elite startups.
Ather Energy Valuation and Industry Impact
The $71 million investment has elevated Ather Energy’s valuation to an estimated $1.3 billion. This valuation aligns Ather with other prominent players in the Indian EV market, most notably Ola Electric, its primary competitor in the premium electric scooter segment.
Before Ather entered into the unicorn club, another Bengaluru-based startup, Rapido, reached unicorn status with a $1 billion valuation, further highlighting the city’s growing influence in India’s tech and mobility sectors.
Strategic Investors and Hero MotoCorp’s Role
Ather Energy’s growth has been supported by a group of influential investors, including Stride Ventures, Hero MotoCorp, and GIC.
Hero MotoCorp, a major player in the Indian automotive industry, holds around a 40% stake in Ather.
In June, Hero MotoCorp announced plans to increase its stake by an additional 2.2%, investing ₹124 crore to strengthen its position in the company. This backing from Hero MotoCorp is critical as Ather continues to expand its market presence and develop its product line.
Ather Energy Partnership with Amara Raja Energy
Ather Energy has recently partnered with Amara Raja Energy & Mobility Ltd, a collaboration that will enhance Ather’s technological capabilities.
This partnership involves the development and supply of Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) lithium-ion cells, which are essential components for Ather’s electric scooters.
This move is expected to improve the performance and efficiency of Ather’s scooters, making them more competitive in the market.
Ather Energy IPO Plans and Financial Performance
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has grown steadily, with an extensive network of over 1,400 charging stations across 100 cities in India. Following the successful IPO of its competitor, Ola Electric, Ather is also gearing up for an initial public offering (IPO).
The company recently transitioned to a public limited company in preparation for this move. Despite its growing revenue, which stood at ₹1,789 crore for FY24, Ather Energy faced a net loss of ₹1,059.7 crore, up from ₹864.5 crore in FY23, reflecting the challenges of scaling in a competitive market.