Ather Energy, the pioneering electric vehicle manufacturer, has made headlines by raising an impressive Rs 286 crore ($34 million) through a combination of debt and equity. This significant funding round comes as Ather gears up for an IPO by 2025, marking a critical milestone in its growth journey.
The funding, which primarily comprises venture debt, saw a substantial contribution from Stride Ventures, which invested close to Rs 200 crore via debentures. Additionally, the company’s co-founders, Tarun Sanjay Mehta and Swapnil Jain, each contributed Rs 43.28 crore through Series F preference shares. These developments were first reported by Entracker and confirmed by regulatory filings accessed from startup data firm Kredible.
This latest infusion of capital follows a previous round of Rs 900 crore raised nine months ago from existing investors Hero MotoCorp and GIC through a rights issue. The recent funding is an extension of the Series E round announced in May 2022, which saw Ather secure $128 million, led by the National Investment and Infrastructure Fund’s (NIIF) Strategic Opportunities Fund (SOF) and Hero MotoCorp, along with additional investors.
Industry sources reveal that Ather was last valued at $700 million. The board approved the current funding during an Extraordinary General Meeting (EGM) conducted on May 28th. The new funds are expected to support Ather’s plans for launching new products, expanding its charging infrastructure, and growing its retail dealership network.
The Road to IPO
Ather Energy’s strategic move towards an IPO involves enlisting the expertise of HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. to arrange its initial public offering. The company, founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, has sold over 1.73 lakh electric scooters to date. It is backed by prominent investors such as Hero MotoCorp, Tiger Global, and GIC.
Ather’s Market Position
As of April 2024, Ather Energy stands among the top four electric scooter manufacturers in India, alongside Ola Electric, TVS, and Bajaj Auto. The company reported a consolidated operating revenue of Rs 1,784 crore for the financial year 2023, marking a remarkable growth of nearly 337 percent. However, this rapid expansion has also seen its losses increase by nearly 150 percent, amounting to Rs 864 crore.
Strategic Growth and Challenges
Ather’s journey has been marked by significant milestones and challenges. The company’s innovative approach, including the use of its proprietary fleet for logistics and delivery services, has set it apart from competitors. This strategy has paid off, positioning Ather as a leader in the Indian EV market.
The funds raised will play a crucial role in supporting Ather’s ambitious plans for growth and innovation. The expansion of its product lineup and infrastructure is expected to enhance customer experience and drive further market penetration. With the upcoming IPO, Ather aims to solidify its position as a key player in the global electric vehicle landscape.
Looking Ahead
Ather Energy’s story is a testament to the potential of innovative startups to transform industries. As the company prepares for its IPO, it continues to push the boundaries of what is possible in the electric vehicle sector. The strategic investments and partnerships it has secured highlight the confidence investors have in its vision and capabilities.
What do you think about Ather Energy’s rapid growth and plans for the future? Will its strategy to expand its product range and infrastructure pay off in the competitive EV market? Share your thoughts and predictions in the comments below!
