Ather Energy today announced that it has raised $128 million (around Rs 990 crore) in investments from the government-backed National Investment and Infrastructure Fund Limited's (NIIFL) Strategic Opportunities Fund (SOF) and, existing shareholder Hero MotoCorp, and additional investors.
This marked the completion of its Series E round of funding.
Ather Energy said in a statement that will use the funding to expand manufacturing facilities, invest in research and development, charging infrastructure and to grow its retail network.
Ather had record numbers in April, 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 presence in 32 cities with 38 Experience Centres and aims to expand to 150 Experience Centres in 100 cities by 2023.
Ather to expand
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." Hero MotoCorp currently holds 34.8% equity in the Bangalore-based electric bike maker.
The current round of investment, he said, will help the company enhance capacities across the board, bring additional focus on new platforms, and expand into new geographies.
This will be NIIFL’s first direct investment in the manufacturing sector and in electric mobility. 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).
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 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."
Ather Energy is expected to come up a new scooter in the coming months. Ather Energy is also reported to have increased its production from 120,000 to 400,000 units per annum at its Hosur facility. To this end, the company has got up a new EV manufacturing facility in Hosur, Tamil Nadu, adjacent to its first production facility that was commissioned early last year.
Over the next three years, Ather plans to increase its annual production capacity to a million scooters and install 5,000 fast chargers across India. It said it would develop new products and increase its network to 600 stores.
