The Competition Commission of India has approved the National Investment and Infrastructure Fund's (NIIF) proposal to acquire an additional stake in Ather Energy.
The deal was cleared by the competition watchdog under the green channel route.
"The acquirer (India-Japan Fund) proposes to acquire certain Series G Compulsorily Convertible Preference Shares of Ather," the regulator said in an order.
India-Japan Fund (IJF) is a fund managed by NIIF. The fund focuses on investing in environmental sustainability, and low-carbon emission strategies and promoting investments by Japanese companies in India.
The transaction will help IJF further its goals by creating value for the broader market for electric two-wheelers, clean mobility transport solutions, and technology-led last-mile transport vehicles, it added.
Ather is engaged in the business of designing and developing electric scooters, while the India-Japan Fund (IJF) is a Sebi-registered alternative investment fund.
It focuses on investing in environmental sustainability and low-carbon emission strategies and aims to enhance Japanese investments in India.
The fund represents a strategic and economic partnership between the governments of Japan and India.
"The proposed transaction does not give rise to any horizontal, vertical, or complementary overlaps.
"...the transaction does not require Commission to define any relevant market(s) given that it is unlikely to cause any appreciable adverse effect on competition," the Competition Commission of India (CCI) said.
Accordingly, the combination is being notified under the green channel.
Under this route, a transaction that does not raise any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the fair-trade regulator.
Last month, Bengaluru-based Ather Energy became a unicorn after closing a Rs 600 crore (USD 71 million) funding from its existing investor NIIF.
Post the funding, Ather has become the country's fourth unicorn this year and second in the mobility space. NIIF first invested in the electric scooter maker Ather in May 2022.
In July this year, Ather Energy saw its loss widened to over 22 per cent to Rs 1,059 crore in fiscal 2024, even though its revenue remained flat over the same period.
The firm's revenue for FY24 was Rs 1,789 crore against Rs 1,783 crore in the previous fiscal. The Hero MotoCorp-backed electric scooter maker's loss stood at Rs 864 crore a year ago.
In June, Ather Energy converted itself into a public limited company as part of its plans to go public soon.
Ather competes with the likes of Ola Electric Mobility, TVS and Bajaj in the electric scooter segment.
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