Tiger Global Management, one of the largest investor in Indian start-ups has decided to put in $12 million in to Ather Energy, a Bangalore based start-up which is designing an electric two-wheeler.
Ather Energy said that the new round of funding will be used for development, testing, production and the launch of its first smart electric two-wheeler named Ather S340.
Founded in year 2013 by IIT graduates-Tarun Mehta and Swapnil Jain, Ather Energy had received its first seed fund of US $1 million in late 2014 from Sachin Bansal and Binny Bansal, founders of Flipkart, and Raju Venkatraman of Medall Healthcare, which provided the initial impetus for Ather's growth plans.
"Ather Energy aims to build smart, connected electric vehicles of the future," said Tarun Mehta, CEO and co-founder of Ather Energy. "We want to offer the Indian consumer a completely new driving experience by developing a product that would be at par with any petrol or electric two-wheelers available in the market today. We are very excited with the interest shown by Tiger Global and all our investors"
This investment is expected to help the start-up to continue to evolve the product and scale it towards launch. The company is currently at an advanced stage of integration on the vehicle platform and testing of the functional prototype. Test rides are scheduled for October this year and the launch for Bangalore, Chennai and Delhi are planned for early 2016.
"We are impressed with Ather's vision of building smart electric vehicles that has a potential to revolutionise the driving experience," said Lee Fixel, co-head of Tiger Global's PE and VC investing arm. "We see great potential in Ather's product offering and the technology and are confident that their maiden launch will attract tremendous positive response. We look forward to partnering with the Ather team and bring their vision to fruition."
The Ather-S340 is a connected vehicle powered by lithium-Ion battery pack, featuring a digital touchscreen dashboard, has a light-weight aluminium chassis and offers a top speed of 75 kmph.