Tarun Mehta, CEO, Ather Energy, said this investment will help the company focus on new platforms by expanding into new geographies and increasing its fast-charging network. “The switch to electric is inevitable and FY 22’ was the turning point for electric two-wheeler adoption in India," he adds.

For the government sovereign fund NIIFL, it’s the first direct investment in the manufacturing sector and in electric mobility. It manages funds with investments in different asset classes and diversified sectors. It manages over $4.3 billion of equity capital commitments across its three funds – Master Fund, Fund of Funds, and Strategic Opportunities Fund.

Also, this is SOF’s fourth investment after its infusion of money in two infrastructure financing NBFCs (Aseem Infrastructure Finance and NIIF IFL) and healthcare chain Manipal Hospitals.

Padmanabh Sinha, executive director & chief investment officer, NIIFL, said 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," he adds.

Ather Energy was founded in 2013 by IIT Madras alumni, Tarun Mehta and Swapnil Jain. It is currently present in 32 cities, with 38 experience centres. It has a target to expand to 150 experience centres in 100 cities by 2023.

Apart from its flagship products, Ather 450 Plus Ather 450X, Ather Energy is reportedly planning to come up with two new models in this range. One of the two models is expected to be a long-range version of 450X, which will have a bigger battery pack, while the other may come with some upgrades. These new models in the 450 range are expected to come into the market by the year-end or next year.

Ather Energy funding

Ather Energy raises ₹989 crore from NIIF, Hero MotoCorp