Ather Energy Turns Unicorn After Raising Rs 600 Crore At $1.3 Billion Valuation

E-scooter maker Ather Energy has turned unicorn after securing Rs 600 crore, or $71 million, funding from India's sovereign wealth fund at a valuation of about Rs 10,900 crore, or $1.3 billion, according to people with knowledge of the matter.

The government's NIIF, or the National Investment and Infrastructure Fund, has agreed to invest an additional Rs 600 crore in Ather. NIIF is an existing backer of Ather and holds about 8% of the company.

Ather Energy was valued at around Rs 5,630 crore in June this year, when Hero MotoCorp Ltd. purchased an additional stake in the company and hiked its holding to 43.94%. The latest funding round marks a near doubling in valuation for Ather.

Ather's fiscal 2024 revenues stood at Rs 1,789.1 crore, with a loss of about Rs 1,059.7 crore. Compared to fiscal 2023, its revenue remained flat, but losses spiked from Rs 864.5 crore. It contributed about Rs 388.6 crore in losses to its largest shareholder, Hero MotoCorp, which counts Ather as an associate company.

Taking its earnings into consideration, Ather has been valued at roughly six times its revenue for the current fundraise. The company is also said to be in talks for an IPO, closing on the heels of its bigger rival, Ola Electric Mobility Ltd., which listed successfully on the bourses last week.

Founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather Energy is involved in the business of electric two-wheelers as well as charging infrastructure. The company, at present, retails four electric scooters—the Ather 450X, 450S, 450 Apex, and Rizta.