After receiving INR 600 crore (USD 71 million) in capital from its current backer, the National Investment and Infrastructure Fund (NIIF), electric scooter maker Ather Energy has joined the unicorn club. With this fundraising round, Ather is now valued at about INR 10,900 crore, or USD 1.3 billion.
With this investment, Ather becomes the second unicorn in the mobility space in the nation this year, after Rapido, which raised USD 120 million from WestBridge Capital and was valued at USD 1 billion.
In May 2022, the Indian sovereign wealth fund, NIIF, made its initial investment in Ather. Ather’s previous valuation in 2022 ranged from USD 740 to USD 750 million. However, Hero MotoCorp, the company’s largest shareholder with a 40% interest, contributed INR 124 crore in a secondary transaction in June, valuing the business at approximately USD 671 million (INR 5,636 crore).
Following its recent offering, Ola Electric, the main rival of Ather, has enjoyed impressive stock market performance. With a market valuation of INR 48,258.89 crore (USD 5.7 billion) on the BSE, Ola Electric has high investor trust and suggests promising development potential for the electric vehicle industry.
With its roughly INR 600 crore investment in Ather, NIIF effectively closed this funding round. Ather’s representative declined to comment on the situation, and as of the time of publication, NIIF had not responded to any of the inquiries.
Ather’s new family scooter model, the Rizta, which it recently began delivering and which, according to the most recent data, has a about 9% market share in the electric scooter industry, is another aspect of its strategic focus.
With the advent of new unicorns and a difficult climate for late-stage funding, Ather’s ongoing investments and market tactics demonstrate its ambitious aspirations in the cutthroat EV industry.
