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Ather Energy, one of the leading electric two-wheeler companies, has raised $128 million in Series E round of funding led by National Investment and Infrastructure Fund Limited (NIIFL), existing investor Hero MotoCorp, and others.

Founded by Tarun Mehta and Swapnil Jain in 2013, Ather Energy previously also received $22 million in funding from Tiger Global, as well as Flipkart founders Sachin Bansal and Binny Bansal.

Ather Energy plans to use the funding to expand manufacturing facilities, invest in research and development, charging infrastructure, and to grow its retail network.

On the funding received, Ather Energy CEO Tarun Mehta said, “The switch to electric is inevitable and FY22 was the turning point for electric two-wheeler adoption in India. We are super excited to have NIIF come on board as an investor. They have been at the forefront of the country’s green transition through their investments and initiatives, and we look forward to our association.”

According to Ather, it registered the highest-ever monthly sales in April 2022, delivering 3,779 units and noted that the booking orders for its flagship product — Ather 450X — was growing at 25 percent quarter-on-quarter.

This EV (electric vehicle) startup has presence in 32 cities with 38 experience centres, and aims to expand to 150 experience centres in 100 cities by 2023.

The investment into Ather Energy by NIIFL, the sovereign fund of India is the first direct investment in the manufacturing sector and in electric mobility. The funding has been through NIIFL’s Strategic Opportunities Fund (SOF), which is one of its three investment vehicles backed by leading domestic and overseas investors.

On the funding into Ather Energy, Padmanabh Sinha, Executive Director and Chief Investment Officer – NIIFL, said,

“Aligned to India’s green transition mission, 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. We are excited to partner with Ather Energy’s founders and management team who have developed deep expertise in the industry….”