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Ather Energy is expected to raise around $95 million in a pre-IPO funding round, which would help the electric two-wheeler maker secure a spot in the unicorn club with its valuation crossing a billion dollars, two sources aware of developments in the company told YourStory.

The $95 million funding will be a primary round led by existing investors keen to increase their stake in the startup ahead of the IPO and to bet on the e-mobility revolution in the country. Some new investors will also participate in the round, one of the sources said.

Hero MotoCorp, among Ather’s largest shareholders, could participate in the round as it looks to shore up its stake in the startup. In September last year, Hero had announced its intention to invest an additional Rs 550 crore in Ather’s rights issue.

So far, the company has invested over Rs 1,000 crore in the Bengaluru-based startup.

“Ather wants to go to the public market with its cash reserves sorted out and on a strong footing. Its investors already believe in the product and the fundamentals, and they think it’s going to be a mega-IPO, so they’re looking to increase their stakes now and dilute down once the company is public,” said one of the sources privy to internal discussions.

“Of course, they’ll also wait and watch Ola Electric‘s IPO first, but generally, Ather’s long-term backers are optimistic of a smooth IPO,” they added.

Ather had last raised $50 million in equity funding in October from Caladium Investment and Herald Square Ventures.

According to an Economic Times report, Flipkart co-founder Sachin Bansal could sell his entire stake in Ather to Zerodha’s Nikhil Kamath. Bansal holds over 10% of the company’s shares, having invested over Rs 400 crore across various rounds in Ather, according to Tracxn.

Bansal has already sold a portion of his stake to Kamath during Ather’s Rs 900 crore rights issue last year, as per the report. The transaction is expected to conclude shortly.

Ather declined to comment on YourStory‘s findings or confirm the ET report.