Bengaluru-based Ather Energy has announced that the company raised $128 million in the latest Series E round of funding. The latest investment round was led by National Investment and Infrastructure Fund Limited's Strategic Opportunities Fund, Hero MotoCorp, one of the early investors in the electric two-wheeler maker, along with other investors. Hero MotoCorp already has a 34 per cent stake in Ather but it's unclear at the moment if the company's stake has increased further with the latest investment. Ather says the funding will be used to expand its manufacturing facilities, invest in research and development, charging infrastructure and grow its retail network.
Also Read: Ather 450X Electric Scooter To Get 2 New Variants This Year
Ather Energy will use the latest funding to expand manufacturing, grow retail network, as well as increase spends on R&D
Commenting on the investment, 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. The current round of investment will help us enhance capacities across the board, 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."
This is NIIFL's first direct investment in the manufacturing sector and in electric mobility. Meanwhile, this is 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). The move will help NIIFL to play a role in the mainstream electric two-wheeler sector in India, the company said in a statement.
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."
Also Read: Two-Wheeler Sales April 2022: Ather Energy Registers 255 Per Cent Growth With 3,779 Units Sold
Ather has two new variants based on the 450X planned for launch this year
Ather Energy has remained one of the more consistent companies from a growth perspective in the electric two-wheeler segment. The company sold 3,779 units in April this year, making its highest-ever monthly sales yet. Meanwhile, the company's flagship offering, the 450X is growing at 25 per cent quarter-on-quarter. The company has a presence in 32 cities with 38 experience centres and plans to establish 150 outlets in 100 cities by 2023.
Ather is also in the process of opening its second manufacturing facility in Hosur, Tamil Nadu, while the company also plans to introduce two new variants of the 450X later this year. Ather is also aiming to begin exports from its facility in the near future.
