Ather Energy: Revolutionizing India’s EV Market

Ather Energy functions as a prime Indian company dedicated to manufacturing electric vehicles that specialize in producing two-wheelers. Ather Energy started in 2013 through the establishment of Tarun Mehta and Swapnil Jain under Bangalore’s main operations. Ather Energy accelerated India’s electric revolution by releasing its progressive scooter lineup containing both the Ather 450 series and Ather Rizta products. Fast-charging stations and vehicle Over-The-Air update features are operated through Ather Grid by the company. 

This article examines all major aspects of Ather Energy, including product lines and business activities, alongside market performance and future potential.

1. Overview and Key Facts:

• Company Description: Ather Energy Ltd. functions as a private Indian company that performs electric two-wheeler engineering while also manufacturing and retailing electric products. Ather Energy Ltd. operates from its home base in Bangalore, Karnataka, India.
• Founding: Founded in 2013 by Tarun Mehta and Swapnil Jain.
• Products: Ather Energy releases five electric scooters through its product offerings, including the Ather 450 Apex, the Ather 450S, the Ather 450X, the Ather 450X Pro and their most recent scooter model, the Ather Rizta. Their initial model was the S340.
• Market Position: Ather Energy operates as an electric two-wheeler manufacturer in India that currently stands fourth after Ola Electric, TVS Motor Company and Bajaj Auto.
• Manufacturing Facilities: Ather operates its EV manufacturing facilities at Whitefield, Bangalore, and Hosur Tamil Nadu. The Hosur plant produces 110,000 scooters together with 120,000 battery packs in its annual production capacity.
• Financial Status (FY24): Revenue: ₹ 1,754 crore (US$200 million).
• Net Income: ₹ −1,059 crore (US$−120 million)
• Ownership: The Major stakeholders are Hero MotoCorp with 37.2% shares, while NIIF holds 10.24% and GIC maintains 15.04%, and Tarun Mehta and Swapnil Jain each control 6.63% of the company through their share ownership.
• IPO Plans: Ather Energy submitted to SEBI its Draft Red Herring Prospectus (DRHP) in September 2024 as part of its IPO strategy to gain ₹ 4,500 crore ($536.2 million) with a company valuation of $2.5 billion. The upcoming IPO incorporates fresh share sales amounting to $370 million and permits existing investors to dispose of up to 22 million of their total shares.

2. History and Funding:

• Early Funding: Ather obtained initial funding through multiple sources, which included the Technology Development Board grant of ₹ 4.5 million in 2014, followed by a $1 million seed investment from Sachin and Binny Bansal, who founded Flipkart in December 2014.
• Significant Investments: Tiger Global and Hero MotoCorp invested heavily in the company through $12 million in 2015, followed by ₹ 180 crore in 2016, which grew to another ₹ 130 crore invested in 2018.
• Further Growth Funding: Ather received $51 million in May 2019, and Sachin Bansal made a substantial investment of $32 million along with it. During this money raising roun,d Hero MotoCorp chose to turn their previous loans into company stock. The company received additional investment funds during July and November 2020 as part of its funding rounds.
• Manufacturing Expansion: In December 2019, Ather Energy signed an MoU with the Government of Tamil Nadu for building a large-scale manufacturing facility in Hosur through a ₹ 635 crore investment (which translates to ₹ 789 crore/$90 million USD in 2023 values).

3. Products:

Ather Energy continues expanding its electric scooter range as it aims to fit different rider needs by offering new models to the market.

• Ather 450S (Launched August 2023): Ather Energy continues expanding its electric scooter range as it aims to fit different rider needs by offering new models to market. Ather launched its 450S model in August 2023 and provides an IDC range of 115 km via its 2.9 kWh battery capacity. The scooter needs 3.9 seconds to go from standing position to 40 km/h and has an upper limit of 90 km/h. 

The scooter showcases a 7-inch DeepView LCD together with new switchgear and incorporates safety improvements that consist of FallSafe technology that stops the motor when detecting potential falls. It also features the Emergency Stop Signal (ESS) system that warns others during emergency braking sessions. Coasting regeneration technology enables vehicles to extend their possible driving distance by 7%.

• Ather 450X: The latest model of 450X comes with expanded battery options between 2.9 kWh and 3.7 kWh, which allows IDC travel distances from 115 km up to 145 km. The model integrates every improvement from the 450S version along with its modern safety functions and the DeepView display system. Users can achieve ultrafast charging of their 450X at Ather Grid stations, which provides performance of up to 1.5 km per minute.
• Ather 450: Ather launched the 450 with an all-aluminum body and its motor delivered 3.3 kW standard power and a peak output of 5.4 kW while its 2.4 kWh lithium-ion battery system enabled a maximum speed of 80 km/h and a city range of 75 km.
• Ather Rizta (Launched April 2024): Launched in April 2024, the Rizta stands out as a family-friendly electric scooter which comes in two variants, offering 2.9 kWh battery models that promise 123 km IDC range (105 km real-world) and 3.7 kWh models with 160 km IDC range (125 km real-world). Both variants reach 80 km/h speed with traction control and skid control as well as ESS, theft and tow detection and Magic Twist, auto hold and reverse mode technology. 

Rizta delivers 56 liters of total storage space that consists of a built-in underseat compartment at 34 liters with an additional 22 liters available through the front trunk option. Drivers can enjoy a 7-inch digital display and Bluetooth features as well as linked accessory functionality with this model. The company shows a strong safety innovation focus during electric scooter development to meet the needs of current riders.

Ather Energy demonstrates its dedication to innovation while focusing on safety standards and adapting to new scooter rider needs through these model developments.

4. Other Services and Infrastructure:

Ather Energy delivers complete electrical scooter support through over-the-air (OTA) software updates and its expansive charging infrastructure, in addition to maintaining customer experience centers.

Over-the-Air (OTA) Updates: Ather Energy performs scooter upgrades through Over-The-Air Updates, which provide new features along with optimizations and bug fix capabilities. The Ather 450 Series and Ather Rizta received Atherstack 6,0, which received the “Freda” codename under the company’s September 2024 release. Accessible through this software update, users can now operate their dashboard in eight languages, with Hindi as the initial selection. 

Ather Grid: Accessible through this software update, users can now operate their dashboard in eight languages, with Hindi as the initial selection. Ather Grid operates through Ather’s charging infrastructure company to provide a wide scope of charging services throughout India. Ather Grid has built a nationwide two-wheeler fast-charging network with 1,000 charging points across 80 Indian cities, making it a major fast-charging infrastructure in India since May 2023.

 The charging stations operate under Ather’s proprietary technology, which allows users to recharge at a speed that yields one kilometer per minute. 

Ather Grid serves its customers through the Ather Grid app, which displays charger locations and lets users start sessions through QR code scanning before conducting remote status tracking. Multiple users can download the app through its availability on the App Store and Google Play.

Ather Space: Customers can experience the brand through Ather Space facilities, which operate as Experience Centers throughout a network of licensed dealers. There are currently 175 Ather Space centers, which have opened in 96 different Indian cities starting in January 2025. The customer experience at these centers lets potential buyers connect with the products and get technology explanations while receiving unique advice that heightens their overall journey.

Ather Energy provides innovative electric scooters accompanied by regular software upgrades as well as broad charging networks together with special product interaction areas which provide an enriched experience for its customers.

5. Key Themes and Important Ideas:

• Rapid Growth in the Indian EV Market: Ather Energy maintains its status as a major player within the quickly expanding sector of electric two-wheelers and the Indian market.
• Focus on Technology and Innovation: Ather Energy maintains its status as a major player within the quickly expanding sector of electric two-wheelers and the Indian market.
• The company prioritizes technological innovation through features such as the touchscreen dashboard, connected features and OTA updates.
• Development of Supporting Infrastructure: Through Ather Grid, the company is currently developing all necessary infrastructure to support electric vehicle users who face range restrictions, thereby increasing vehicle adoption rates.
• Strategic Partnerships and Investments: Hero MotoCorp and other major businesses provide substantial funds to support Ather’s business approach because they regard this model as promising.
• Expansion of Product Portfolio: Ather increased its product diversity through new model introductions, which added the family-focused Rizta to its 450S passenger model series for different market customer needs.
• Ambitions for Public Listing: The recent announcement about an IPO filing indicates that Ather Energy actively aims to list on public markets and plans for accelerated growth as a publicly traded organization.

6. Notable Quotes:

• The Hosur manufacturing plant operates at an annual speed of 110,000 scooter production in addition to the creation of 120,000 battery packs. The statement shows the magnitude of their production facilities.
• The Ather Grid operates through proprietary charger and adapter technology to recharge Ather scooters at a speed of 1 kilometer per minute. The speed of their charging infrastructure becomes evident through this statement.
• The Ather 450X comes equipped with a 4G SIM card and Wi-Fi as well as Bluetooth connectivity and features a new 7″ touchscreen dashboard. Their primary model features advanced technological components which demonstrate the company’s technological advancements.

How to Buy Ather Energy Shares?

The shares of Ather Energy remain as private holdings due to its present status as a privately owned firm. After the public listing of the company, shareholders will obtain stock ownership through NSE and BSE market exchanges.

The process to acquire Ather Energy shares will involve the following steps after their initial public offering (IPO).

1. Open a Demat and Trading Account registered stockbrokers, including Zerodha Upstox and Groww.
2. Check the IPO Listing Date can be accessed on SEBI or stock market portals.
3. Apply for Shares during the IPO subscription window.
4. Allotment Process: If allotted, shares will be credited to your Demat account.
5. Trade on the Market: Once listed, buy or sell shares based on market performance.

When is Ather Energy IPO Coming?

The Initial Public Offering period from Ather Energy should happen during early 2025, according to SEBI approval expectations.

IPO Highlights:

• Expected IPO Size: ₹4,500 crore (~$536.2 million)
• Company Valuation: ~$2.5 billion
• New Shares Offering: Worth $370 million
• Existing Shares for Sale: Up to 22 million shares
• Stock Exchange Listing: NSE and BSE
• Expected Listing Date: The public issue of Ather Energy is anticipated to list publicly during early 2025 after SEBI provides its final approval.

Is Ather Energy Profitable or Not?

The profitability status of Ather Energy remains uncertain. The company was not profitable in the consecutive FY24 financial year. The company reported:

Revenue: ₹1,754 crore (~$200 million)

Net Loss: ₹1,059 crore (~$120 million)

Reasons for Losses:

• High R&D and Expansion Costs: Heavy investment in product development and infrastructure.
• Competitive EV Market: Product price competition exists between Ather Energy and its rivals, Ola Electric and TVS and Bajaj Auto, in the EV market.
• Manufacturing Expenses: The expansion of production facilities demands major costs for expenses related to manufacturing.

Future Profitability Outlook:

• Increased sales with the launch of Ather Rizta.
• Ather Grid will expand its charging network across all strategic locations.
• The company should achieve better cost efficiency when it enlarges its production facilities.
• Revenue boost post IPO funding and strategic investments.

Conclusion:

In that, we covered almost every aspect and gave readers a thorough look at Ather Energy’s historical background, together with its product line, systems, and business performance. The editorial warnings about promotional content and potential biases require thorough critical assessment of the information while requiring extra sources to achieve complete knowledge about the company. Ather Energy plays a vital part in India’s electric vehicle sector, according to the information presented, while showing strong plans for expansion.