Bengaluru: The Indian government, through a $600 million (about Rs 5,781 crore) climate fund jointly backed with Japan, is investing another Rs 200 crore in Ather Energy. The fund first backed the electric scooter maker in 2024, ahead of its stock market listing the following year.The India-Japan Fund will participate in a Rs 1,200 crore preferential allotment approved by Ather’s board on Wednesday. Hero MotoCorp, Ather’s largest shareholder, will invest Rs 960 crore, while founders Tarun Mehta and Swapnil Jain will invest Rs 20 crore each.The India-Japan Fund is a partnership between the Government of India and the Japan Bank for International Cooperation (JBIC). The Indian government contributes 49% of the fund’s commitments, while JBIC accounts for the remaining 51%. It is managed by the National Investment and Infrastructure Fund (NIIF).The India-Japan Fund will be allotted 16.2 lakh equity shares at Rs 1,230 apiece. Hero MotoCorp and the founders will receive convertible warrants priced at Rs 1,260 each. Ather had initially proposed raising about Rs 1,000 crore but expanded the issue by 20% to accommodate the fund’s participation.The fund focuses on environmental sustainability and low-carbon businesses. Ather is among at least three electric mobility companies backed by the fund, alongside Mahindra Last Mile Mobility and EKA Mobility.In 2024, Ather raised Rs 600 crore from NIIF at a valuation of $1.3 billion, propelling it into India’s unicorn club. The latest investment comes after NIIF sold 87 lakh Ather shares for about Rs 541 crore in November 2025, representing roughly 49% of its holding in the company at the time.
