Leading electric scooter manufacturer Ather Energy, which is based in Bengaluru, has hit a serious landmark by joining the much-aspired-to unicorn club. This comes after securing a substantial $71 million investment from the existing backer National Investment and Infrastructure Fund. With this round, the two-wheeler startup’s valuation inched up to about $1.3 billion, making it the milestone in the growth chart for the company.
PC: ET Retail
The infusion of capital is the latest in the fund-raising juggernaut by Ather, which has mopped up over $125 million in the last three months. Earlier this month, Ather raised about $34.5 million by issuing debt and equity—the co-founders, Tarun Mehta and Swapnil Jain, invested more than $10 million in the round. Hero MotoCorp had also put in Rs 124 crore ($15 million) while Stride invested Rs 60 crore ($7 million) in the firm.
Ather’s fundraising journey has seen key investors participating, including the likes of Tiger Global, Hero MotoCorp, Nikhil Kamath, Sachin Bansal, and a few others. This takes its total funds raised to nearly $450 million, showing a strong investor appetite toward a fast-growing electric vehicle segment.
The company is eyeing a potential IPO as Ather continues to expand its operations and market presence. Recently, Ather turned into a public firm. This shows the intention that it will go for an IPO in the near future. This would further blend with the strategic vision that the company has toward monetizing on increasing demand for electric vehicles and cementing its place in the industry. It has the biggest competitor in Ather, Ola Electric, which has already burst into the stock market, announcing the beginning of fierce competition in the EV market.
However, FY24 has seen a minor dip in the performance of Ather’s financials in terms of the revenues. In comparison to FY23, the company reported a fall in the revenue from operations by 1.5% to Rs 1,754 crore against Rs 1,781 crore. Now, without even revealing losses in the last fiscal year, the company is still fierce about driving growth and innovation in the electric mobility space.
Ather joining the unicorn club has tagged it as the fourth unicorn of 2024 after mobility firm Rapido, Perfios, and Krutrim SI Designs. The success story mirrors the dynamism of the Indian startup ecosystem; innovative firms that have managed to rope in huge investments and growth.
Overall, the latest funding round for Ather Energy is further validation of the strong market position and potential for growth in the electric vehicle sector. With strategic investments in place, a clear path to an IPO, and rampant demand for sustainable mobility solutions, Ather is poised for future growth.
