Electric scooter manufacturer Ather Energy has officially entered the unicorn club, securing a Rs 600-crore ($71 million) investment from the National Investment and Infrastructure Fund (NIIF), according to sources familiar with the matter. This latest funding round has valued Ather at $1.3 billion (approximately Rs 10,900 crore).

Ather becomes the fourth Indian unicorn this year and the second in the mobility sector, following Rapido, which recently raised $120 million from WestBridge Capital, achieving a $1 billion valuation as reported by ET on July 29.

NIIF, India’s sovereign wealth fund, initially invested in Ather in May 2022. At that time, Ather was valued between $740-750 million. Hero MotoCorp, Ather’s largest shareholder with a 40% stake, made a Rs 124 crore investment in June, reflecting an inferred valuation of $671 million (Rs 5,636 crore).

This funding comes as Ola Electric, Ather’s larger competitor, experiences a surge in its stock value, with a market capitalisation of Rs 48,258.89 crore ($5.7 billion) on the BSE, surpassing its last private valuation of $5.4 billion. Industry experts suggest that public market investors are viewing Ola Electric as a key player in the EV sector’s growth.

Ather’s latest round marks the first new-age company investment by NIIF after it withdrew from a planned investment in omnichannel retailer FirstCry. “NIIF has contributed nearly Rs 600 crore, and the round is now complete,” a source confirmed.

Representatives for Ather declined to comment, and NIIF did not respond to requests for comment as of Monday evening.