EV maker Ather Energy raises $50 million led by Caladium Investment

Electric Two wheeler manufacturer Ather Energy has raised $50 million in equity funding led by its existing investor Caladium Investment Pte Ltd with participation from Navam Capital-backed Herald Square Ventures.

Sources in the industry said that the funds will be utilized to expand the company’s manufacturing capabilities and towards developing technology.

As per the company’s filings with the Registrar of Companies (RoC), Caladium owned by GIC Investment has invested Rs 400 crore and Herald Square Ventures has invested Rs 64 lakh in Ather Energy.

In May of 2022, Ather raised around $128 million led by National Investment and Infrastructure Fund (NIIF), the Indian government’s sovereign wealth fund, and existing investor Hero MotoCorp. So far the company has raised more than $300 million in equity funding.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather manufactures two electric scooters - the Ather 450X and the Ather 450 Plus. It has also established electric vehicle charging infrastructure across the country called the Ather Grid. Industry sources also said that the company is mulling an IPO in the next year.

According to the Federation of Automobile Dealers Associations, Ather Energy sold 1,192 units in July and 5,261 units in August. In September the company sold around 6, 150 units.

Ather Energy, is in fact gearing up to double sales next year, with its second facility in Hosur, Tamil Nadu, slated to go on stream next month. With the commissioning of the new Rs 650 crore plant, the EV maker expects its annual two-wheeler production capacity to hit 400,000 units when fully operational.

The company is looking for a location for its third facility, from where it plans to produce 1 million units per annum, co founder Mehta had said during an exclusive interview with Moneycontrol in Spetember.