The Competition Commission of India (CCI) has granted approval to the National Investment and Infrastructure Fund (NIIF) to acquire an additional stake in electric scooter manufacturer Ather Energy. The deal was processed through the green channel route, a mechanism for automatic approval of transactions that pose no significant competition concerns.
According to the CCI’s order, the India-Japan Fund (IJF), managed by NIIF, will purchase Series G Compulsorily Convertible Preference Shares of Ather Energy. The IJF focuses on investments in sustainability and low-carbon strategies, with an emphasis on fostering Japanese investment in India.
This investment aligns with IJF’s mission to support clean mobility and electric two-wheelers, furthering its broader market goals in technology-driven transport solutions.
Ather Energy, known for designing and manufacturing electric scooters, has become a key player in the electric vehicle space. The India-Japan Fund, a Sebi-registered alternative investment fund, aims to deepen India-Japan economic ties by investing in sectors that promote environmental sustainability.
The CCI stated that the transaction does not create any competitive concerns or market overlap, meaning it did not require a detailed market assessment. The acquisition was approved under the green channel, allowing swift clearance for deals that don’t pose a threat to competition.
This comes after Ather Energy achieved unicorn status in July, following a Rs 600 crore ($71 million) funding round led by NIIF. The Bengaluru-based firm became the fourth unicorn of 2023 and the second in the mobility sector, with NIIF first investing in Ather in May 2022.
Despite its growing valuation, Ather reported a widening loss of over 22% for fiscal year 2024, reaching Rs 1,059 crore. Revenue remained steady at Rs 1,789 crore compared to Rs 1,783 crore the previous year. The company’s loss in FY23 was Rs 864 crore. In June 2024, Ather transitioned into a public limited company, signaling its intent to go public. The company faces competition from other electric mobility players like Ola Electric, TVS, and Bajaj.
