Our Bureau
New Delhi
The Government of India will invest ₹200 crore in electric two-wheeler manufacturer Ather Energy through the India-Japan Fund as part of the company’s ₹1,200-crore preferential fundraise, reinforcing its commitment to accelerating electric mobility and strengthening the domestic clean-tech ecosystem. The investment will be made alongside Hero MotoCorp and Ather’s founders, according to the company’s stock exchange filings.
The funding marks the first tranche of Ather’s broader ₹2,500-crore capital-raising programme. Hero MotoCorp, the company’s largest shareholder, will contribute ₹960 crore through convertible warrants, while co-founders Tarun Mehta and Swapnil Jain will invest ₹20 crore each. The India-Japan Fund, jointly backed by the Government of India and the Japan Bank for International Cooperation (JBIC) and managed by the National Investment and Infrastructure Fund Ltd (NIIFL), will subscribe to equity shares worth ₹200 crore.
The government’s investment reflects its broader strategy of supporting high-potential electric vehicle manufacturers capable of driving innovation, localisation and sustainable mobility. Ather has emerged as one of India’s leading EV startups with in-house capabilities spanning vehicle design, battery technology, software and charging infrastructure. Strengthening such firms is expected to advance India’s objective of increasing EV adoption while reducing dependence on fossil fuels.
The fresh capital is expected to help Ather expand manufacturing capacity, invest in research and development, and scale its product portfolio. The investment aligns with the government’s long-term vision of building a globally competitive electric mobility ecosystem and achieving its clean energy and climate goals through strategic public-private partnerships.
