The Competition Commission of India (CCI) has granted approval for the National Investment and Infrastructure Fund (NIIF) to expand its ownership in Ather Energy under the green channel route. Through its India-Japan Fund (IJF), which concentrates on investing in environmental sustainability and low-carbon emission strategies while boosting Japanese investments in India, NIIF is set to acquire a stake in Ather Energy. This strategic transaction is designed to contribute to the growth of the market for electric two-wheelers, clean transportation solutions, and technology-driven last-mile transport vehicles.
Ather Energy is primarily involved in the development and design of electric scooters, marking its place as a key player in the market. On the other hand, the India-Japan Fund (IJF) is a registered alternative investment fund under the Securities and Exchange Board of India (Sebi), focusing on environmental sustainability and low-carbon emission strategies alongside promoting Japanese investments in the Indian market. This collaboration between India and Japan through the fund signifies an important economic and strategic partnership between the two nations. The proposed transaction has been deemed free from horizontal, vertical, or complementary overlaps, as stated by the Competition Commission of India (CCI), thereby not requiring a definition of relevant market(s) due to the lack of significant adverse effects on competition.
In recent developments, Bengaluru-based Ather Energy achieved unicorn status following a substantial funding round of Rs 600 crore (USD 71 million) from NIIF, solidifying its position as the country's fourth unicorn and the second in the mobility sector this year. With NIIF's initial investment in Ather Energy occurring in May 2022, this new acquisition paves the way for further growth and innovation in the electric scooter industry. Despite facing a widened loss in fiscal 2024, Ather Energy remains dedicated to its goal of innovation and expansion, as indicated by its conversion into a public limited company, hinting at potential plans for an upcoming IPO. Ather Energy faces competition from industry players such as Ola Electric Mobility, TVS, and Bajaj in the electric scooter segment, showcasing a competitive landscape focused on sustainable transportation solutions.