Ather Energy is a two-wheeler electric vehicle manufacturing company that announced its plans to file papers for an Initial Public Offering. The company plans to hold an IPO round with the participation of existing investors to raise Rs 4,000 crore. The report by ET mentioned that the company is expected to raise Rs $415 to $476 million and reach a valuation of $2.5 billion. The company is expected to launch an IPO round this year.
The EV firm plans to use these fresh proceeds to expand its capacity, meet general corporate purposes, and improve its production capability. The startup received strong interest from institutional investors over the last few months. The company is also raising a 71 million USD round from its existing investor National Investment and Infrastructure Fund at a unicorn valuation. Ather Energy has appointed JP Morgan, JM Financial, HSBC Securities, Axis Capital, and Nomura as the investments that will run the IPO. Economic Times reported. The company planned to use the IPO proceeds to enhance its components while expanding its services across India.
The startup offers several innovative two-wheeler EV solutions and earns revenue from subscription-based after-sale services. Ather Energy has secured over 502 million USD across multiple funding rounds since its inception, including $34.5 million raised from Stride Ventures in a debt and equity round. The company has 14 institutional investors including Caladiu, Investment, Hero Motocorp, NIIF, and Innoven Capital. The Bengaluru startup faces competition from other companies in the same sector such as Ola Electric, Ampere Vehicles, and Gogoro. After the funding round, Hero Motocorp remained the largest shareholder with a 38.11 percent stake in the firm.
The development came after Ola Electric completed its IPO and raised $754 million at a valuation of 4 billion USD. In the first quarter of this financial year, Ola Electric has been ahead of the firm. Ola Electric reported an operational revenue of Rs 1,644 crore with 32 percent YoY growth. Ather posted a 2 percent YoY decrease in its revenue from operations to around Rs 1,753 crore in FY24. However, the losses also increased by 23 percent to Rs 1,059 crore in the same duration. Ather Energy had a post-money valuation of around 1.3 billion USD in its last funding round in August 2024.
Conclusion:
Ather Energy is an Electric Vehicle firm that offers innovative two-wheeler EV solutions. The startup turned unicorn last month after securing the fresh capital of $71 million in a funding round from NIIF. The firm reported its plans to file papers for its IPO to raise Rs 4,000 crore at a valuation of 2.2 billion USD. The startup intends to use this amount to scale up its operation, expand its offerings, and advance its technology. After this round, the EV startup plans to file approval for its Initial Public Offering from the Security Exchange Board of India. The company has secured around $502 million across all its funding rounds since its inception. Ather Energy competes with other two-wheeler manufacturers such as Ampere Vehicles, Hero Electric, Simple Energy, and Ola Electric Mobility.
