August 13, 2024: Ather Energy, the trailblazer in electric two-wheelers, has officially achieved unicorn status following a substantial funding round. The company raised ₹600 crore ($71 million) from its existing investor, the National Investment Infrastructure Fund (NIIF), propelling its valuation to $1.3 billion (approximately ₹10,900 crore).
This milestone comes hot on the heels of Ola Electric’s successful stock exchange debut, which saw its shares soar past ₹100 after an initial opening at ₹76 on August 9.
The Economic Times initially reported on Ather’s latest funding achievement. Ather Energy declined to comment on the development, and an email query sent to NIIF went unanswered. The sovereign wealth fund, which first invested in Ather in 2022, continues to support the company’s ambitious growth trajectory.
This funding round arrives amid a surge of activity in India’s mobility sector. Last month, Hyderabad-based ride-hailing app Rapido also joined the unicorn club, while Bhavish Aggarwal-led Ola Electric made waves with its stock market performance.
Electric Two-Wheeler Giant Ather Energy Becomes Unicorn
In a significant strategic move, Ather Energy has transformed from a private entity into a public limited company as of June this year, with plans to file for an Initial Public Offering (IPO). To facilitate this transition, Ather has enlisted the expertise of global financial giants HSBC Holdings, Nomura Holdings, and JPMorgan Chase & Co.
Hero MotoCorp, a major stakeholder in Ather Energy, enhanced its investment in June by acquiring an additional 2.2% stake for ₹124 crore. According to data from Tracxn, Ather reported a revenue surge to ₹1,806 crore for the fiscal year 2022-2023, a significant increase from ₹413.9 crore the previous year. However, the company’s losses widened to ₹864.5 crore from ₹344.1 crore in the prior fiscal year.
As Ather Energy gears up for its IPO, the company is set to navigate an increasingly competitive and dynamic electric vehicle market in India.
