Ather plans to use the latest funding to expand manufacturing, R&D, charging infrastructure and grow its retail network.
Electric scooter company Ather Energy raised $128 million in its Series E funding round led by NIIFL Strategic Opportunities Fund and Hero MotoCorp among others, the company announced on Thursday.
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Ather plans to use funding to expand manufacturing, R&D, charging infrastructure and grow its retail network.
Hero MotoCorp had invested $12 million in the Series D funding round of the company and now its latest investment manifests its continued confidence in the brand.
"This will be NIIFL's first direct investment in the manufacturing sector and in electric mobility. The investment will enable NIIFL to play a role in mainstreaming the electric two-wheeler sector in India at an early stage of development and support first generation domestic entrepreneurs in building a new product with a high level of indigenisation," a company statement said.
"Aligned to India's green transition mission, the electric two-wheeler industry is expected to grow significantly in the coming years. Ather Energy has indigenously designed and developed products with a high degree of domestic sourcing of components and adaptability to Indian conditions" said Padmanabh Sinha, Executive Director & Chief Investment Officer - NIIFL.
Tarun Mehta, CEO of Ather Energy, said that the company has already hit over Rs 100 crore in terms of revenue a month and hopes the number doubles in the current financial year.
According to him, the industry could touch 100,000 scooters a month by the end of the year from the current 40,000-50,000 if the shortage of chips does not worsen.
So far, Ather has raised over $230 million funding.
The company had closed its Series D funding round in November 2020 when it raised an investment of $35 million. The funding round was led by Sachin Bansal, who made an investment of $23 million.
One of the frontrunners in the EV space now, Ather launched its first scooter in 2016. Currently, Ather's flagships are Ather 450X and Ather 450 Plus.
The funding, however, comes at a time when concerns are rising over safety of electric vehicles owing to recent fire incidents in the country, even as India continues to aim big on its EV transition plans.
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