Ather Energy Pvt. Ltd, a Bengaluru-based electric two-wheeler manufacturer, is looking to raise funding from both new and existing investors at a unicorn valuation. The company is said to be seeking a primary infusion of approximately $250 million, with a significant secondary component, in order to achieve a post-money valuation of $1.3 billion, Economic Times reported.
The National Infrastructure Investment Fund (NIIF), which is already an investor in the company, is expected to take part in the funding round, with a potential investment of around $50 million. A US-based fund and other investors are also believed to be in discussions with Ather Energy to lead the round.
Ather Energy, which counts Hero MotoCorp among its investors, has previously raised between $170-$180 million, with its most recent funding round in October valuing the company at around $800 million. Co-founder and CEO Tarun Mehta has stated that the company achieved revenue of over ₹2,000 crore (about $300 million) in January and is aiming to reach $1 billion in revenue by the end of this year.
As part of an ambitious expansion plan, Ather Energy is opening distribution centres across India and plans to increase production capacity to 20,000 units a month by March. The company is hoping to build on the success of its existing electric scooter models and expand its offerings in the electric two-wheeler market.
A spokesperson for investment bank Avendus Capital, which Ather Energy hired to scout for investments, declined to comment on the latest developments. Meanwhile, email queries to Ather Energy and NIIF have yet to receive a response.
Ather Energy's pursuit of unicorn status highlights the growing interest in electric vehicles in India and the wider world. With climate change concerns and regulatory pressures pushing consumers and businesses towards more sustainable transportation options, the electric vehicle market is expected to grow rapidly in the coming years. As a result, Ather Energy and other electric vehicle manufacturers are seeking funding to finance their expansion and capitalise on the growing demand for their products.
