Ather Energy, an electric two-wheeler manufacturer, has secured $71 million in a recent funding round led by its existing backer, the National Investment and Infrastructure Fund (NIIF). This latest infusion of capital has elevated the company’s valuation to $1.3 billion, officially marking it as a unicorn startup—a term for privately held companies valued at $1 billion or more. India now hosts approximately 106 unicorns.
Since late 2023, the company has been actively raising funds through multiple rounds. In May this year, the company secured Rs 286 crore ($34 million) via a combination of debt and equity, largely from venture debt and contributions from its co-founders. Stride Ventures, a venture debt firm, invested around Rs 200 crore through debentures, while Ather’s co-founders, Tarun Sanjay Mehta and Swapnil Jain, each contributed Rs 43.28 crore through Series F preference shares.
Additionally, in September last year, Hero MotoCorp, an existing shareholder, received board approval to invest Rs 550 crore into Ather Energy. Prior to this, in October 2022, the company raised $50 million in equity funding, led by Caladium Investment Pte Ltd, with participation from Herald Square Ventures, backed by Navam Capital.
This achievement aligns with Ather’s plans to enter the public market by 2025, for which they have enlisted HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. to manage the initial public offering. Ather Energy was founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain. To date, the company has sold over 1.73 lakh electric scooters and is supported by Hero MotoCorp, Tiger Global, and GIC.
Ather ranks among India’s top four electric scooter manufacturers, alongside Ola Electric, TVS, and Bajaj Auto. The company reported a consolidated revenue of Rs 1,753 crore for the financial year 2024, a slight decline of 1.7 percent year-on-year (YoY). Ather is the latest in a series of startups to achieve unicorn status in the last eight months. In May 2024, Porter joined the unicorn club following an internal funding round.
Ather Energy is a pioneering Indian electric vehicle manufacturer, founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain. Specializing in electric scooters, the company is known for its innovative design and cutting-edge technology. Backed by investors like Hero MotoCorp and Tiger Global, the company is a leading player in India’s rapidly growing electric mobility sector.
