Electric vehicle manufacturer Ather EnergyBest known for its premium electric scooters, is set to launch its initial public offering (IPO) in the coming months.
A Moneycontrol report stated that the Bengaluru-based electric vehicle maker is expected to unveil its Red Herring Prospect Project (DRHP) with SEBI next week, aiming to raise between Rs 4,000 crore and Rs 4,500 crore through a mix of fresh issues and offers for sale (OFS).
The report comes a month later Bhavish AggarwalIBM-led Ola Electric has gone public, doubling investors’ wealth in 11 days since its listing.
Aiming for a double assessment
The report noted that Ather Energy is targeting a valuation of approximately $2.5 billion, almost double the valuation it achieved during its last funding round.
Last month, the electric vehicle maker entered the unicorn club after raising $71 million (Rs 596 crore) in a funding round led by the government-owned National Investment and Infrastructure Fund (NIIF).
Although there was no official announcement regarding the fundraising, several media reports suggest that Ola Electric’s rival has reached a valuation of 1.3 billion dollars.
Financing and investors
Since its inception, Ather Energy has raised more than $570 million in funding from prominent investors including Stride Ventures, Hero MotoCorp, GIC, Caladium Investments, Herald Ventures, InnoVen Capital, and Zerodha co-founder Nikhil Kamath.
It is worth noting that Hero MotoCorp is a major shareholder, with about 40% stake in Ola Electric’s rival. In June, Hero MotoCorp announced plans to increase its stake in the company by 2.2% for Rs 124 crore.
Who are the founders?
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy designs, manufactures and sells electric two-wheelers, including popular models like the Ather 450X, Ather 450 Plus, Ather 450S and Ather Rizta.
The startup also has an extensive network of more than 1,400 charging stations in 100 cities.
Ather Energy’s presence in the market
In August, Ather Energy holds a market share of nearly 12% and recorded a 51% monthly growth in electric two-wheeler sales, reaching 10,829 units.
Ola continues to dominate the market with a share of over 40%, followed by TVS Motors with 30%.
For fiscal year 24, Ather Energy Revenue stood at Rs 1,789 crore, slightly higher than the previous fiscal year’s Rs 1,783 crore, according to Hero MotoCorp’s annual report.
The company’s net loss widened to Rs 1,059.7 crore in FY24, from Rs 864.5 crore in FY23.
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