Ather Energy, an Indian electric two-wheeler manufacturer secures $128 Million from the National Investment and Infrastructure Fund’s (NIIF), Hero MotoCorp, and Strategic Opportunities Fund (SOF) in a Series E round.
Ather plans to use the funds raised to expand its production units, with a strong focus on research and innovation. In April, the company sold 3,779 electric vehicles monthly. This was its highest-ever sales record. Quarter-on-quarter, Ather’s flagship E-scooter, the Ather 450x is seeing 25% more demand.
NIIF is a collaborative investment platform that caters to Indian and international investors. It is anchored in India by the Government of India which handles funds with investments in various asset classes and diversified sector. This is the first direct investment of NIIF in the manufacturing sector or electric mobility.
NIIF has managed to secure equity capital commitments of over $4.3 billion through its three funds, the Master Fund, Strategic Opportunities Fund, and Fund of Funds. This is due to a solid investment strategy.
Ather intends to expand its retail sales network in India with significant investments from key stakeholders such as Hero MotoCorp. The company currently operates in 32 cities and has 38 experience centers to encourage e-transport among Indian riders.
Ather’s CEO Tarun Mehta said, “The current round of investment will help us enhance capacities across the board. It will help us bring additional focus on new platforms, expand into new geographies, expand our fast-charging network and double down on the reputation we’ve built for making a product that’s high on quality.”
Hero MotoCorp in Ather Energy made an earlier investment of Rs 4.2 billion ($56.44 million) in order to increase its market share in the electric two-wheeler manufacturer. This was the fifth investment made by the company in Ather Energy.
Ather began operations in February from its Tamil Nadu facility in Hosur. It then started delivering electric scooters to 6 Indian cities. According to the company, the Hosur facility is compatible with Make in India’s initiative out of which 90% of the components are being used locally.