Ather Energy Joins Unicorn Club

Ather Energy Joins Unicorn Club

The Bengaluru-based EV maker becomes India’s latest startup with a market cap or net worth of INR 116.95 billion.

Bengaluru, August 13, 2024 — Ather Energy, an electric scooter producer, has joined India's unicorn club by receiving ₹600 crore (about $71 million) from the National Investment and Infrastructure Fund (NIIF), bringing its worth to INR 116.95 billion. Ather becomes the fourth Indian business to earn unicorn status in 2024, after Perfios, Krutrim AI, and Rapido.

India's sovereign wealth fund, NIIF, is investing in Ather for the second time. It had previously participated in Ather's Series E round in 2022. This capital will help the Ather create new facilities and extend its charging network.

Ather Energy was founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain. It was a pioneer and innovative in India's electric two-wheeler industry.

The firm is most known for its high-end electric scooters, such as the Ather 450X and Rizta, but it has also made significant investments in Ather Grid, a fast-charging network. By December 2023, the Ather Grid would have covered 1,600 charging stations across India.

Ather's goal is to create a community that is different from others. Besides selling electric scooters, Ather is working on creating an infrastructure that supports charging stations. People trust Ather for its customer centered approach, cutting edge technology and sleek design.

But with great success comes big responsibility. Even though Ather has made strong progress in technology and is a well-known name in the EV industry, it has faced some money problems. In FY24, the company’s total revenue was ₹1,753 crore, which was a little less than the year before.

Yeah, so this drop just goes to show—even the big EV players can hit a rough patch. Honestly, it’s not shocking when you factor in stuff like sky-high production costs, governments constantly moving the goalposts, and every other company fighting for a piece of the pie. Though the team Ather is not much bothered about these They’re still focussing on new ideas and how to win over more customers through best practices.

Executives believe that the current losses are a result of spending in R&D, infrastructure, and new product development.

In June 2024, Ather filed an IPO. The IPO earnings will likely be utilized to manufacture new production plants and widen the company's national reach.

"The fresh capital from NIIF reinforces our long-term vision for clean and connected mobility," Ather CEO Tarun Mehta said in a statement. "As we scale across markets and introduce new products, our focus remains on delivering innovation, performance, and reliability."

Ather introduced The Rizta in early 2024 as a more inexpensive, family-friendly electric scooter aiming to cover a larger share of the market. Deliveries have started in Pune and will shortly spread to other cities. Industry watchers see the Rizta as an attempt to compete in the larger commuter category, where competitors such as Ola Electric, TVS, and Bajaj are already present.

According to industry statistics, Ather  has an approx. 12% share of India's electric two-wheeler market, which has seen magnificent development. Ather’s growth can also be attributed to rising fuel prices, government incentives, and growing environmental consciousness. Ather also has high brand loyalty in metropolitan areas, with many customers appreciating the scooter's performance, design, and connected capabilities.

Ather's unicorn status is a significant milestone for India's electric car sector. The government has supported electric vehicles through initiatives such as FAME II and various state incentives. Experts believe Ather's performance demonstrates that Indian entrepreneurs may have a significant influence in the hardware-focused clean technology sector.

"This is a significant vote of confidence for India's EV sector," said Rajiv Kapoor, an auto expert. "Ather's long-term investments in technology and infrastructure are now starting to pay off. The task ahead will be to strike a balance between size and profitability.

Ather recently conducted its initial public offering (IPO).  It is one of India's first major electric two-wheeler businesses to go public, potentially opening up opportunities for other entrepreneurs in the developing EV sector.

Now that Ather Energy has become a unicorn and is working on new plans, it’s becoming a big player in electric vehicles and helping India move toward cleaner, greener transportation.

The question isn’t whether India will switch to electric vehicles—it’s how quickly companies like Ather can lead the way.