In a major development, electric vehicle (EV) manufacturer Ather Energy has successfully raised ₹1,340 crore from anchor investors just before its Initial Public Offering (IPO). This achievement shows strong confidence among investors in Ather’s future growth and India’s booming EV market. Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has grown to become one of India’s leading electric two-wheeler companies. It is known for its smart, high-performance electric scooters like the Ather 450X and Ather 450S. The company has steadily gained popularity, especially among young and tech-savvy customers who prefer smart and eco-friendly vehicles.
According to official information, Ather Energy managed to attract some of the biggest names as anchor investors. These include GQG Partners, Goldman Sachs, SBI Mutual Fund, Axis Mutual Fund, HDFC Mutual Fund, Franklin Templeton, ICICI Prudential Mutual Fund, and Aditya Birla Sun Life Insurance. Anchor investors play a very important role because they invest just before the IPO opens for the general public. Their investment boosts confidence among retail and institutional investors. Ather’s ability to raise ₹1,340 crore is a strong signal that the market trusts its business model and future growth plans.
Ather Energy’s IPO will consist of two parts: a fresh issue of shares worth ₹757 crore and an offer for sale (OFS) of 2.5 crore equity shares by existing shareholders. Some of the key shareholders planning to sell a part of their stakes include Hero MotoCorp, Flipkart co-founder Sachin Bansal, and InnoVen Capital. The company plans to use the fresh funds raised from the IPO for setting up new manufacturing facilities, expanding charging infrastructure across India, research and development (R&D), and covering working capital requirements. The IPO price band is expected to be announced soon, and many experts predict strong demand from investors, considering the excitement around EV stocks.
Several reasons make Ather Energy popular among customers. First, Ather offers smart electric scooters packed with advanced features like touchscreen dashboards, Google Maps navigation, over-the-air software updates, and fast charging options. These features appeal strongly to today’s tech-driven generation. Second, Ather’s scooters are known for their strong build quality, fast acceleration, and reliable battery life. For example, the Ather 450X can go from 0 to 40 km/h in just 3.3 seconds, making it one of the fastest scooters in its category. Third, Ather has invested heavily in expanding its charging network called Ather Grid. These fast chargers are now available in more than 100 cities across India, making it easier for electric vehicle users to charge their scooters conveniently. Finally, Ather’s focus on eco-friendly and sustainable transportation fits perfectly with the global trend towards reducing carbon emissions and fighting climate change.
When it comes to financial performance, Ather Energy has shown impressive growth. For the financial year 2023, the company reported revenue of around ₹1,784 crore, more than double compared to the previous year. However, like many growing startups, Ather is still making losses due to heavy investments in infrastructure, research, and marketing. The company is confident that with increased sales, improved production efficiency, and a wider market reach, it will soon become profitable.
After the IPO, Ather has ambitious growth plans. It plans to launch more affordable electric scooters to reach a larger audience across India. The company is also planning to introduce electric motorcycles in the coming years. In addition, Ather is looking to expand into international markets such as Southeast Asia and Europe, where there is growing demand for electric two-wheelers. It will also strengthen its Ather Grid network by installing more fast chargers across highways, residential areas, and commercial zones to address users’ concerns about range. Ather will continue to invest in technological innovations to create better batteries, improve scooter performance, and add new smart features.
Market experts believe that Ather Energy’s IPO is coming at the right time. With the Indian government heavily promoting EV adoption through subsidies, incentives, and policy support, the electric vehicle industry is booming. The success of companies like Ola Electric and Tata Motors’ EV division shows that there is a huge demand for clean, electric transportation solutions. Experts suggest that investors looking for long-term growth opportunities in the EV space should definitely watch Ather Energy’s IPO closely.
However, Ather Energy also faces some challenges. The company will have to deal with rising competition from major players like Ola Electric, TVS Motor, and Bajaj Auto. There is also the issue of battery costs and raw material price fluctuations. Building and maintaining a strong after-sales service network will be crucial for winning customer trust. Additionally, convincing traditional two-wheeler buyers to switch from petrol vehicles to electric scooters will require continuous education and promotion efforts. Nevertheless, with its strong brand image, innovative products, and solid investor backing, Ather Energy is well-positioned to tackle these challenges.
Ather Energy’s successful fundraise of ₹1,340 crore from anchor investors ahead of its IPO is a major milestone. It not only highlights the growing trust in India’s EV startups but also sets the stage for one of the most exciting IPOs of the year. For investors, Ather Energy offers a unique opportunity to be part of India’s electric vehicle revolution. With its strong focus on technology, quality, and innovation, Ather is racing ahead to create a greener, cleaner future for everyone. As the IPO opening date approaches, excitement is building among investors and EV enthusiasts alike. Ather’s inspiring journey from a small startup to a major EV player shows that the future belongs to those who innovate, adapt, and dream big.
