Ather Energy, a well-known electric scooter maker, has reached an important milestone by entering into the coveted unicorn club after a substantial $71 million infusion of funds from an existing investor, National Investment and Infrastructure Fund. This recent funding round propels Ather Energy to a valuation of 1.25 billion dollars, pinning it as a key player in the dynamic electric two-wheelers market.
PC: The Economic Times
Copies of the regulatory filings accessed by Entrackr show that Ather Energy board passed a special resolution to issue 1,65,28,925 Series G compulsory cumulative preference shares of issue price of Rs 363 each for raising Rs 600 crore or $72 million. This strategic decision underlines its commitment to accelerate growth, innovation, and market expansion in this fast-evolving electric vehicle sector.
Hero MotoCorp retains its position as the largest external stakeholder in Ather Energy even after funding, as it now owns a stake of 38.11 percent, followed by 16.3 percent by Caladium Investment. Key investors forming part of this successful funding round at Ather Energy are NIIF, Tiger Global, and the brothers from Zerodha. This strengthens Ather’s investor base with more diversification and strength to support future growth initiatives.
According to the internal documents accessed by Entrackr, Ather Energy has clocked a strong revenue of Rs 339 crore in the first quarter of this fiscal while it also registered a net loss of Rs 183 crore for the same quarter. With an expected revenue to remain a tad low at Rs 1754 crore in FY24, Ather Energy would continue to look for ways to enhance its operational efficiency, create more avenues for revenues, and go for sustainable growth in the competitive electric vehicle market.
In comparison, its competitor Ola Electric, which went public some time ago, announced revenues of Rs 1,644 crore for the first quarter of the fiscal year. The key factor was a heavy plunge of its net loss by 17% to Rs 347 crore. The slick performance by players like Ather Energy and Ola Electric showcases the changing fortunes of the electric two-wheeler segment that’s moving ahead with fierce competition, evolving innovation, and consumer preference.
Ather Energy, on the other hand, reported a market share of 9 percent in the electric two-wheeler segment for the first quarter of FY25, a drop from 11 percent in FY24. While Ather Energy lost its lead, Ola Electric surged ahead and captured the pole position with as high as a market share of 42 percent in Q1 FY25, while TVS Electric followed in second place at 19 percent in the same period. Market dynamics reflect increased competition and the changing fortunes of players in electric two-wheelers, which is possible only with strategic investments, product innovation, and customer-centricity for continued growth and market leadership.
With the recent funding milestone and the current performance of its products in the market, Ather Energy is well-positioned to continue with innovation, expansion, and value creation in the dynamic fast-evolving market landscape of electric vehicles.
