Hyderabad, India – Electric two-wheeler manufacturer Ather Energy has catapulted into India’s coveted unicorn club, securing a substantial INR 600 crore ($71 million) investment from its existing backer, National Investment and Infrastructure Fund (NIIF). This infusion values the company at a robust $1.3 billion post-money valuation.
The development, reported by the Economic Times, marks another feather in the cap for India’s burgeoning startup ecosystem, which has witnessed a flurry of unicorn creations this year. Ather Energy joins the likes of Krutim AI, Perfios, and Rapido in achieving this milestone.
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has emerged as a dominant player in India’s electric two-wheeler market. Beyond manufacturing and servicing electric scooters, the company has established a comprehensive ecosystem encompassing charging infrastructure, energy storage, distribution, and management.
NIIF has been a consistent supporter of Ather Energy, having participated in the company’s Series E funding round alongside Hero MotoCorp. This fresh capital injection follows the startup’s recent debt financing of INR 60 crore through non-convertible debentures from InnoVen Capital.
With an eye on a public listing by the end of 2024 at a valuation of approximately $2 billion, Ather Energy underwent a conversion to a public entity last month. However, the road to an IPO has been accompanied by financial challenges. The company’s net loss widened by 22.5% to INR 1,059.7 crore in FY24, although its revenue from operations saw a modest 0.3% increase to INR 1,789.10 crore.
Ather Energy’s journey to unicorn status comes on the heels of another high-profile funding round. Bengaluru-based ride-hailing platform Rapido recently raised $120 million from WestBridge Capital, propelling its valuation to over $1 billion.
As the Indian electric vehicle market continues to gain momentum, Ather Energy’s ascent to unicorn status underscores the growing investor interest and potential of this sector.
