India is shifting fast
towards clean and smart transportation. Electric vehicles (EVs), especially
electric scooters, are becoming common on Indian roads. This change is not just
about technology—it’s about solving real problems. Fuel prices are rising,
pollution is choking our cities, and people now want affordable, eco-friendly
alternatives. This is where Ather
Energy, a leading EV startup from Bengaluru, enters the scene.
With popular models like
the Ather 450X and
the new Ather
Rizta, and with a strong tech background, Ather Energy is
getting ready for its Initial Public Offering (IPO).
Investors and retail traders alike are closely watching this development, as
the IPO is expected to open the door for public participation in one of India’s
most promising EV companies.
About Ather Energy: EV Innovation Made in India
Ather Energy was founded in 2013 by two IIT
Madras graduates, Tarun Mehta and Swapnil Jain,
with the aim of reimagining scooters for the Indian consumer. From the
beginning, Ather focused not just on making electric vehicles, but on creating
a connected and intelligent
ecosystem around electric mobility.
The company’s scooters
come equipped with features like smart dashboards, mobile app integration, GPS
navigation, and real-time ride analytics. Think
of it as a smartphone on two wheels.
Ather's Product
Line-up
Their most popular models include:
- Ather 450X Gen 3 – Designed for performance-focused riders.
- Ather 450S – A more budget-friendly model with smart
features.
- Ather Rizta – Launched in 2024, aimed at families and
daily riders.
The company is also
planning to launch a premium electric motorcycle platform
named Zenith in
the near future.
Ather’s Business Model and Revenue Streams
Unlike traditional two-wheeler brands that
rely on dealers, Ather follows a Direct-to-Consumer (D2C) model.
It owns and operates Experience Centres in
major Indian cities, ensuring better customer service and brand control.
Another key part of its
ecosystem is Ather
Grid, India's largest public fast-charging network for
two-wheelers. These chargers are placed in cafes, malls, and
parking lots—making charging easy and convenient.
Ather generates revenue
through:
- Sales of
scooters (major revenue contributor)
- Accessories
and service packages
- Software subscriptions (like Ather Connect and AtherStack)
Ather Energy Financials: Performance Before IPO
| Financial Year | Revenue (₹ Cr) | Net Loss (₹ Cr) |
|---|---|---|
| FY22 | 408.9 | 344.1 |
| FY23 | 1,780.9 | 864.5 |
| FY24 | 1,753.8 | 1,059.7 |
Financial Highlights (₹ in crore)
Ather’s revenue grew over 4 times from FY22 to FY23,
showing a clear rise in demand. The losses reflect high spending on R&D,
factory expansion, and marketing.
Assets and
Liabilities (FY24)
- Total assets: ₹1,913.5 crore
- Total liabilities: ₹1,367.6 crore
- Net worth: ₹545.9 crore
- Borrowings reduced from ₹485.2 crore in FY23 to ₹314.9 crore in FY24
Cash Flow (FY24)
- Operating activities: -₹267.6 crore
- Investing activities: -₹228.1 crore
- Financing activities: +₹633.2 crore
- Net cash: +₹137.5 crore
Ather Energy IPO Details: Fresh Issue + Offer for Sale
As per CNBC-TV18, Ather Energy plans to
raise between ₹2,900 crore and ₹3,200 crore through the IPO.
This is a revised figure, lowered from the initial ₹3,500–₹3,700 crore target. The
company is now aiming for a post-money valuation of around ₹12,800 crore, instead of the earlier ₹14,000 crore estimate.
The IPO will include
both:
- A fresh
issue of shares (to fund R&D, factory setup, and
infra expansion)
- An offer
for sale (OFS) from early investors
Founders Tarun Mehta and
Swapnil Jain are expected to sell part of their stake. Importantly, Hero MotoCorp,
which owns over 37% of Ather, will not be selling any shares
in this IPO.
Electric Vehicle Market in India: Strong Winds for Ather’s Sails
Major Growth Drivers
- FAME II subsidy and additional state-level incentives
- Petrol prices over ₹100/litre, making EVs more economical
- Better charging
infrastructure and battery technology
- Government’s
2030 target of 30% vehicle electrification
India’s two-wheeler
market is the largest in the world. So even if a small portion shifts to
electric, companies like Ather have huge potential to scale.
Why Ather’s IPO Could Be a Smart Investment
Ather Energy has built a tech-first, customer-focused brand
that resonates with the Indian youth. Its scooters are seen as aspirational yet
practical. The company is not just assembling EVs—it is building a full-stack
ecosystem.
Here’s why the IPO is
worth considering:
- Strong brand among tech-savvy urban users
- India's largest
two-wheeler EV charging network
- Revenue
rising consistently (₹408 Cr → ₹1,753
Cr in 2 years)
- Hero MotoCorp backing, adding credibility
- Solid
roadmap: new plants, new markets (like Nepal), and new products
However, investors must also note that Ather is still a loss-making startup, and the EV market is highly competitive with players like Ola Electric, TVS, and Bajaj.
Sources
Ather Energy- ICICI DirectDisclaimer
The information provided in this article is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any securities. Readers are advised to do their own research or consult a qualified financial advisor before making any investment decisions. The author and the website are not responsible for any financial losses or outcomes resulting from the use of this information. The article may include forward-looking statements, which are subject to risks and uncertainties. Investments in IPOs and equity markets are subject to market risks.
