Ather Energy, the Indian electric vehicle (EV) pioneer, has officially achieved unicorn status after securing $71 million in funding from the National Investment and Infrastructure Fund (NIIF) on August 13, 2024.
This milestone elevates Ather’s valuation to $1.3 billion, marking it as the fourth unicorn in India this year and the second in the mobility sector, following Rapido’s recent success.
NIIF’s Continued Support and Ather’s Strategic Expansion
The National Investment and Infrastructure Fund (NIIF), India’s sovereign wealth fund, has been a key supporter of Ather Energy, initially investing in the company in May 2022.
Known for its innovative electric scooters, Ather was previously valued at around $740-750 million in 2022. Since then, the company has been on an aggressive growth trajectory.
Ather Energy has been actively expanding its product line and manufacturing capabilities. Recently, the company launched its new family scooter, the Rizta, which has received positive market reception.
Additionally, Ather is planning to establish a third manufacturing plant in Aurangabad to meet the growing demand in key markets across western and northern India.
Financial Performance: Balancing Growth and Profitability
Ather Energy’s financial performance reflects both its rapid growth and the challenges associated with scaling operations.
For the fiscal year ending March 2023, Ather reported a substantial increase in revenue, which tripled to ₹1,784 crore, up from ₹408 crore the previous year.
However, this impressive growth came with a significant rise in losses, escalating to ₹864.5 crore from ₹344.1 crore in FY22.
The company’s total expenses surged to ₹2,670.6 crore, highlighting the challenges of maintaining profitability during expansion.
Despite these financial pressures, Ather continues to attract investment and position itself as a leader in the Indian EV market.
In the fiscal year 2024, Ather reported a loss of ₹1,059 crore, while its revenue remained relatively stable at approximately ₹1,789 crore.
The company is now preparing for an initial public offering (IPO) and has transitioned to a public limited company as part of its long-term growth strategy.
What’s Next for Ather Energy?
As Ather Energy moves forward, the focus will likely be on optimizing operations to balance growth with profitability.
The upcoming IPO will be a crucial step in the company’s journey, providing additional capital to fuel further expansion.
With the support of NIIF and other investors, Ather is well-positioned to continue leading the charge in India’s electric mobility revolution.
Conclusion
Ather Energy’s journey to becoming a unicorn underscores the company’s commitment to innovation and growth in the electric vehicle sector.
While the road ahead may present challenges, Ather’s strategic investments and continued support from key investors like NIIF provide a strong foundation for future success.
As the company gears up for its IPO and further expansion, Ather Energy remains a significant player in India’s rapidly evolving EV market.
