Electric scooter manufacturer Ather Energy has taken a significant step towards its initial public offering (IPO) by converting from a private to a public company. The company’s name has changed from Ather Energy Private Limited to Ather Energy Limited following board approval.
Ather recently raised ₹286 crore ($34 million) through a combination of debt and equity, including contributions from venture debt and co-founders. Hero MotoCorp, an associate company of Ather, now holds a 38% stake following a ₹124 crore ($15 million) investment made earlier this month. To date, Ather has raised over $550 million, with a valuation of $750 million during its Series E round.
According to Vahan data, Ather was the fourth-largest two-wheeler EV manufacturer in May, with a 9.45% market share. In May, Ather sold 6,024 units, an increase from 4,000 units in April, though down from 17,000 units in March. Ola Electric leads the market, followed by TVS and Bajaj.
Ather reported a slight decrease in revenue for the fiscal year ending March 2024, with a 1.5% drop to ₹1,754 crore from ₹1,781 crore in FY23. Despite this, the company maintains a stable scale.
Ather competes with several other electric vehicle manufacturers, including Ola Electric, which recently received SEBI’s approval for a $660 million IPO. Ola Electric experienced exponential growth in FY23, with a seven-fold increase in revenue to ₹2,631 crore. Other competitors include TVS, Hero Electric, River, and Okinawa.
Ather’s conversion to a public entity marks a pivotal move as it prepares for its IPO, positioning itself strategically in the competitive EV market.
Avinash Dyal
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