Indian electric two-wheeler manufacturer Ather Energy has raised $71 million from government-backed National Investment and Infrastructure Fund Limited (NIIF), at a valuation of $1.3 billion, a source familiar with the matter told DealStreetAsia.
The Economic Times first reported about Ather’s funding. The company declined to comment.
Ather Energy, which counts Tiger Global, Caladium Investments, and Herald Ventures among its investors, plans to file for its initial public offering (IPO) in a couple of months at a valuation of around $2 billion, the source said.
Ather Energy’s rival Ola Electric made its public market debut last week. Ola Electric’s stock surged 20% on its listing day on Friday, valuing the company at $4.8 billion.
Bengaluru-based Ather has become the fifth company to have breached the $1 billion valuation mark in India this year. This includes Rapido, a bike taxi platform, which raised $120 million in a fresh funding round led by WestBridge Capital. Other firms that have entered the unicorn club this year are Perfios, a fintech startup that collects data to help financial institutions make lending decisions, Krutrim, an AI startup established by Ola founder Bhavish Aggarwal and on-demand logistics startup Porter.
Unicorn creation has been declining sharply year-on-year in India. Twenty-four private startups had topped the billion-dollar valuation mark in 2022, down from 45 in 2021, triggered by a slew of factors including global monetary policy tightening, rising inflation, and global economic slowdown.
Only two startups—Zepto and Incred Finance—made it to the coveted club in 2023.
With valuations stabilising, the frenzy to enter the unicorn club also seems to have mellowed.
In a 2022 report, venture growth investor Iron Pillar had pegged India’s unicorn tally at more than 250 by 2025. Going by the current trend, the target now looks almost elusive.
Ather’s funding is the most recent example of rising investor interest in India’s EV market. The space in India has been buzzing with many startups such as Kinetic Green, Altigreen, BatterySmart, Ola Electric, Blusmart, BOLT, and Baaz Bikes raising funds from a host of investors including corporate VCs and automakers.
In 2022, NIIF invested in Ather’s $128 million Series E funding round along with Hero MotoCorp.
