Ather Energy IPO Details

Ather Energy Limited is a pioneering Indian electric two-wheeler (E2W) company, founded in 2013 by Tarun Mehta and Swapnil Jain. Headquartered in Bengaluru, the company focuses on end-to-end development of electric scooters, battery packs, charging infrastructure, and software, all designed and developed in-house. As a pure-play EV manufacturer, Ather emphasizes innovation, user experience, and quality, positioning its products at the premium end of the Indian E2W market. In Fiscal Year 2024, Ather sold 109,577 E2Ws, making it the third-largest E2W player in India by sales volume, according to the CRISIL Report.

Ather's product lineup includes two main scooter lines: the Ather 450 series, which is performance-focused, and the Ather Rizta series, launched in April 2024, which targets family and convenience users. The 450 was India’s first E2W to feature a touchscreen dashboard, 3G connectivity, cloud integration, and a top speed of 80 kmph. The Rizta introduced several innovations, such as voice commands via Alexa Skills, WhatsApp notifications, 56L of storage, and traction control – a first for Indian E2Ws.

The company’s technology ecosystem is anchored by Atherstack, its proprietary software platform, which powers its vehicles and integrates features like over-the-air updates, navigation, ride analytics, and safety tools. Atherstack had 64 features as of July 2024, and in FY24, 89% of owners purchased advanced features, while 61% used connected features weekly. Software revenue contributed 6% to operational revenue, and Atherstack achieved a 56% EBITDA margin.

Ather manufactures its scooters and battery packs at its Hosur factory in Tamil Nadu, with an annual capacity of 420,000 E2Ws and 379,800 battery packs as of FY24. It is also building a new plant, Factory 3.0, in Chhatrapati Sambhajinagar, Maharashtra, which will eventually increase its capacity to 1.42 million units. Its distribution model is capital-efficient and asset-light, with 208 experience centres and 191 service centres across India, and a growing presence in Nepal.

The company’s business model is built on four pillars: vertical integration, a software-defined ecosystem, premium product positioning, and capital efficiency. This approach allows Ather to control product quality, accelerate innovation, and offer a superior customer experience. The company places strong emphasis on ESG (Environmental, Social, and Governance) principles, with dedicated committees and policies promoting ethical practices, sustainability, and talent development under the Make in India initiative. Through its integrated strategy and continuous innovation, Ather aims to redefine urban mobility and lead India’s transition to electric vehicles.