Indian electric two-wheeler company Ather Energy has raised $128 million from the National Investment and Infrastructure Fund’s (NIIF) Strategic Opportunities Fund (SOF) and Hero MotoCorp, in a Series E funding round.

Ather aims to deploy the funding raised to accelerate the expansion of its production units with a focus on research and development. The company recorded the highest ever monthly sales of electric vehicles in April, delivering 3,779 units. The demand for Ather’s flagship smart vehicle — Ather 450x – is also increasing by 25% quarter-on-quarter.

A collaborative investment platform, NIIFL caters to international and Indian investors and is anchored by the Government of India, which manages funds with investments in different asset classes and diversified sectors. This is NIIFL’s first direct investment in the manufacturing sector and electric mobility.

With a strong investment strategy, NIIFL manages over $4.3 billion of equity capital commitments across its three funds — the Master Fund, Fund of Funds, and Strategic Opportunities Fund.,

With significant investments from stakeholders like Hero MotoCorp, Ather plans to enhance its robust retail sales network across India. Currently, the company operates in 32 cities with 38 experience centers to promote e-transport among Indian commuters.

Ather’s CEO Tarun Mehta said, “The current round of investment will help us enhance capacities across the board. It will help us bring additional focus on new platforms, expand into new geographies, expand our fast-charging network and double down on the reputation we’ve built for making a product that’s high on quality.”

Earlier this year, Hero MotoCorp invested ₹4.2 billion (~$56.44 million) in Ather Energy to increase its shareholding in the electric two-wheeler manufacturing company. This was the fifth investment by the company in Ather Energy, the first one dating back to 2016.

Last February, Ather commenced its operations from its facility in Tamil Nadu’s Hosur and started delivering the electric scooters in six Indian cities. The company said that the Hosur facility aligns with the Make in India initiative, with 90% of components to be used locally.