India's Ather Energy adds $50m to Series E
India’s Ather Energy, a two-wheel electric vehicle (EV) brand, has raised about USD 50m from existing investors, extending its Series E round to around USD 178m.
Singapore’s Caladium Investment provided USD 48.6m in the latest tranche, according to AVCJ Research. UK-based Herald Square Ventures also participated. It follows a USD 128m investment in May featuring National Investment & Infrastructure Fund (NIIF) and Hero Moto Corp, India’s largest manufacturer of conventional motorbikes.
NIIF invested via its Strategic Opportunities Fund, a private equity vehicle that makes growth and development stage commitments to companies of strategic importance to the Indian economy. The strategy is led by Paddy Sinha, formerly managing partner of Tata Opportunities Fund.
The round values the company at around USD 700-USD 800m, according to local media. The capital will be used to expand existing manufacturing capacity, scale up charging infrastructure, and invest in R&D and retail network development.
There are currently two factories in operation and talk of setting up a third. As of May, the retail footprint included 38 dealerships in 32 cities, and plans were in place to expand to 150 locations across 100 cities by 2023.
Ather is best known for app-connected scooters with features such as touchscreen navigation, Bluetooth call alerts, and music controls. The most recent model has a larger battery that enables a range of 105 kilometres; its predecessor’s range was 85km.
The company has about 310 charging points, which it claims makes it one of the largest fast-charging scooter networks in the country. Power-related features include charge status updates via app, portable chargers that can plug into any home socket, and a home charging port that effectively reduces the weight of the vehicle by externalising the charging system.
There are now more than 250 two-wheeler EV designs, trademarks, and patents, while trademark filings have been made in over 20 countries. Additional services include post-sale and roadside services, doorstep pickup, and a range of internet-enabled diagnostics and driving-related features.
Ather has raised more than USD 300m in equity since its inception in 2014. Previous investors include Tiger Global Management, InnoVen Capital, Medall Haetlhcare, and the founders of local e-commerce giant Flipkart. InnoVen provided debt funding as recently as last month.
Indian EV is a fast-growing area of investor interest, particularly in the two-wheeler and shared mobility categories. Recent activity includes EverSource Capital acquiring fleet operator Lithium Urban Technologies, and BP leading a USD 50m round for EV ride-hailing player BluSmart.
Earlier this month. GIC led a USD 60m round for Euler Motors, which specialises in three-wheeler cargo vehicles with a focus on commercial rather than passenger use. It has a charging network of about 500 points, mostly in the New Delhi region.
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