Ather Energy is a Bengaluru-based electric scooter manufacturer who has been putting a stir in the EV market. It has raised Rs 60 crore, around over $7 million, in debt funding from Stride Ventures through its trustee Vistra ITCL. It is the second time in less than two months that this company has won a second debt infusion. Their first was when, in May, about Rs 200 crore was invested through debentures from Stratagem Ventures.
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Now, you might be wondering why Ather is raising all that money. Well, they’re prepping up for a possible IPO. They’re aiming to go public! Although it’s still a little fuzzy when their IPO is going to happen, they already took a big step in converting themselves into a public company back in June. This move is like a green light that signals to the world that they are ready to hit the stock market.
Well, Ather Energy has been on a real fundraising spree, having mopped up around $450 million to date from marquee investors such as Tiger Global and Hero MotoCorp. Now, coming to Hero MotoCorp, well, they are not only investors but also happen to be sizeable stakeholders in Ather at about 38%. Now, that’s what I call serious backing!
Despite operational revenues of Rs 1,754 crore, down marginally from Rs 1,781 crore in FY23, Ather still seems to be holding ground. Of course, the largest chunk of its revenues comes from the sale of electric scooters, while other sources include after-sale services and subscriptions. But you know what? They stand as the fourth largest two-wheeler EV manufacturer in the country, having sold 6,097 units in June 2024. That gives them a market share of 7.66%. Their arch-rival Ola Electric still rules the top spot, commanding a market share of 44%, but Ather is definitely holding on to its own.
Basically, Ather is expanding its manufacturing capabilities, which means getting up their third manufacturing plant in Maharashtra with humongous investments of Rs 2,000 crore. This shall not only produce electric two-wheelers but also the battery packs, which is a smart move looking at the demand for EVs.
Now, what does this all mean for Ather Energy? Well, they’re clearly on a growth trajectory; this new round of debt funding will help them scale even further. With their eyes set on an IPO, they want to position themselves strong in the EV market. That’ll be very interesting, to see how they do against rivals, especially Ola Electric. Ather does give off the feeling that it’s on the right path due to strong financial backing and well-planned strategic expansions.
