Ather Energy: India’s Third-Largest Electric Scooter Brand

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IPO Deep Dive

Ather Energy in one minute

Ather Energy has set out to redefine the two-wheeler experience in India—by designing premium electric vehicles from the ground up. At a time when the EV market was nascent, Ather pioneered its own path, focusing on cutting-edge technology, in-house battery manufacturing, and integrated software.

Their breakthrough came in 2018 with the Ather 450—the first Indian E2W to offer connected features, OTA updates, and a top speed comparable to petrol scooters. By FY24, Ather had sold over 1.09 lakh scooters and became the third-largest EV 2W brand by volume in India.

Today, their product range includes the performance-focused Ather 450 line and the newly launched Ather Rizta, designed for families—with innovations like Alexa voice control, 56L storage, and traction control.

With a fast-growing charging network, deep R&D roots, and an upcoming mega factory to scale to 1.42 million units, Ather isn’t just building scooters—it’s building India’s electric future.

IPO Overview
IPO Price Band: ₹304–₹321 per share
Opening Date: April 28, 2025
Listing Date: May 6, 2025
Issue Size: ₹2,980.76 crore (₹2,626 crore fresh issue + ₹354.76 crore offer for sale)
Post-Issue Valuation: ~₹11,956 crore

Introduction

India is the world’s largest two-wheeler market—and Ather Energy is shaping its electric future.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy was built with a bold ambition: to create an entirely new category of premium electric two-wheelers (E2Ws) designed, developed, and manufactured in India. At a time when the EV landscape was still taking shape, Ather set out to pioneer a vertically integrated approach—developing not just electric scooters, but also the batteries, software stack, charging infrastructure, and connected ecosystem that power them.

The result? A fully in-house product strategy that emphasizes quality, performance, and user experience. With over 109,000 scooters sold in FY24 and recognition as the third-largest E2W brand in the country (CRISIL Report), Ather has become synonymous with innovation in the Indian EV market.

From the high-performance Ather 450 to the family-first Ather Rizta, the company continues to launch category-defining products—bringing smart dashboards, voice integration, over-the-air updates, and fast-charging to millions of users. Supported by a strong R&D backbone, a scalable manufacturing base, and a network of 200+ retail centers, Ather is more than an EV company—it’s a platform for India’s transition to clean, connected mobility.

As electrification and premiumization trends reshape the two-wheeler market, Ather’s integrated business model, deep technology capabilities, and capital-efficient growth strategy position it to lead the next era of sustainable urban transportation.

History

It began in 2013 with a bold ambition: build India’s first truly homegrown premium electric scooter.

Back then, electric two-wheelers were an afterthought—underpowered, poorly designed, and unable to match the performance of petrol vehicles. Tarun Mehta and Swapnil Jain saw an opportunity to rewrite that narrative. Their vision was simple yet audacious: design electric vehicles from the ground up in India, with a focus on performance, software, and user experience.

In 2018, Ather launched its first product—the Ather 450. It wasn’t just a scooter. It was a statement. With a top speed of 80 kmph, a touchscreen dashboard, and cloud-connected features, it marked a turning point for India’s E2W market. For the first time, an electric scooter felt aspirational.

By 2020, Ather was scaling rapidly. It opened its Hosur factory and rolled out Ather Grid, the country’s first fast-charging network for two-wheelers. The company continued to invest heavily in R&D, building an in-house team and developing its proprietary operating system, Atherstack, which powered advanced features like OTA updates and ride statistics.

In 2022, Ather crossed the 1 lakh vehicle milestone. It expanded its footprint with experience centres across India and launched new models under the Ather 450 platform, solidifying its position in the premium EV segment.

2024 marked another leap. Ather introduced the Rizta—a family-first scooter with voice control, WhatsApp integration, 56L of storage, and traction control. It was also the year Ather became the third-largest E2W player by volume in India, selling over 109,000 units.

Today, Ather is building for scale. With its third factory underway and production capacity set to exceed 1.4 million units, the company is laying the groundwork for national and global expansion. What started as a product dream in a Bengaluru lab is now one of India’s most admired EV platforms—driven by innovation, purpose, and a vision for cleaner, smarter mobility.

Risk factors

Ather Energy is building a premium EV brand in a fast-growing, competitive market. But growth at scale comes with significant internal and external risks that could impact profitability, operations, and investor returns.

1. Sustained Losses and Negative Cash Flows Pressure Profitability
Ather has yet to post a profit. Between FY22 and FY24, it reported cumulative losses of over ₹22,000 million and consistent negative cash flows. Continued investments in manufacturing, product development, and network expansion may further delay profitability—and there’s no assurance future revenue will offset rising costs.

2. Limited Operating History Makes Forecasting Difficult
Founded in 2013 and launching its first product in 2018, Ather has a relatively short track record. This limited history adds uncertainty to evaluating its ability to scale efficiently, expand internationally, or maintain profitability in a volatile EV landscape.

3. EV Market Adoption Could Slow or Stall
Ather’s future depends on mass adoption of electric two-wheelers in India and beyond. Factors like limited charging infrastructure, cost concerns, unclear resale value, or competition from ICE improvements and alternative fuel tech could delay market conversion—slowing sales growth.

4. Heavy Dependence on a Few Models for Revenue
In FY24, over 60% of revenue came from the Ather 450X (3.7 kWh). A lack of broad model adoption creates concentration risk. If demand shifts or a product underperforms, overall revenue and margins could take a hit.

5. High Customer Acquisition Costs and Competitive Pressures
Despite strong user growth, marketing expenses remain high—up to 13% of revenue in past years. With growing competition from legacy OEMs and new EV entrants, maintaining market share will require ongoing spend, which could further strain margins.

6. Quality and Product Reliability Risks
Ather has faced complaints over battery range, transmission durability, and software performance. While most were resolved through updates and extended warranties, future incidents could damage brand trust, prompt recalls, and increase support costs.

7. Vulnerability to Component and Supply Chain Disruptions
Ather sources key components—like lithium-ion cells—from suppliers in China and South Korea. Any geopolitical tension, trade restriction, or raw material price spike could disrupt production and increase costs, especially as global EV demand rises.

8. Reliance on Retail Partners for Customer Experience
The company operates an asset-light distribution model through third-party experience and service centers. Poor service quality, staff shortages, or partner exits—especially in key cities—could hurt customer satisfaction and damage Ather’s premium brand positioning.

9. Government Incentives Are a Key Sales Driver
Ather’s pricing is significantly impacted by subsidies like FAME and EMPS 2024. Any cutback, delay, or eligibility change could raise scooter prices and reduce affordability—hurting sales and increasing churn. Ather Rizta and Apex models could be especially affected.

10. Competitive Landscape Is Crowded and Evolving Fast
India’s two-wheeler market is dominated by legacy players with deep pockets and extensive networks. New EV startups and global OEMs are also entering aggressively. Ather must continually innovate and differentiate to remain relevant and competitive.

Market Opportunity

The Indian mobility landscape is undergoing a seismic shift. Already the world’s largest motorised two-wheeler (2W) market by volume, India clocked 18.4 million domestic 2W sales in FY24 alone. By FY31, this number is projected to soar to 29–31 million units, driven by rapid urbanisation, rising incomes, and evolving consumer expectations.

This transformation is being shaped by two structural tailwinds: electrification and premiumisation.

Electrification at Scale

The electric two-wheeler (E2W) category is one of the fastest-growing verticals in India’s automotive industry. In FY24, EVs accounted for 5.1% of total 2W sales—but penetration in scooters has already reached 15%. By FY31, EV scooters are expected to command 70% market share, with E2Ws overall growing at a staggering 41%–44% CAGR, hitting 10.2–12.2 million units annually.

Behind this shift is a compelling economic story:

• E2Ws are 37% cheaper to operate than ICE scooters even without subsidies.

• With subsidies, the cost advantage rises to 55%.

• By FY31, the price gap between E2Ws and ICE 2Ws may shrink to just 7%—making EVs not just cheaper to run, but competitive to buy.

Lower total cost of ownership, coupled with advanced features like Bluetooth, LTE, touchscreen displays, and connected software, is creating a new class of value-conscious, tech-savvy buyers.

Rise of the Premium Segment

India’s middle class is expected to grow from 432 million to 715 million by FY31. Alongside, per capita income is forecasted to rise at a 9.4% CAGR between 2024 and 2029. This economic rise is translating into rising demand for premium products—including 2Ws.

In just five years, the share of motorcycles with >125cc engine capacity grew from 38% to 52%. Scooters followed a similar trajectory, with premium models increasing from 20% to 47%. Financing accessibility, youthful demographics, and feature-rich launches are accelerating this premiumisation trend.

Global Positioning

India isn’t just a consumption powerhouse—it’s a manufacturing one too. With 3.5 million 2Ws exported in FY24, primarily to Asia, Africa, and North America, Indian OEMs are positioned to serve both domestic and global demand. The global 2W market is projected to reach 80–82 million units by 2029, and India has the scale and cost advantage to play a leading role in that growth.

Ather’s integrated business model—centered on vertical ownership of hardware, software, and charging infrastructure—places it at the forefront of this shift.

The convergence of:

• EV affordability,

• feature-rich consumer demand,

• and rising export potential

is creating a once-in-a-generation opportunity for E2W players to shape the future of mobility.

With a premium product suite, strong R&D foundation, and early-mover advantage, Ather is positioned to ride the macro tailwinds and lead the next decade of electric transformation in India—and beyond.

Product

Ather operates one of India’s most advanced electric two-wheeler (E2W) ecosystems—combining high-performance vehicles, proprietary software, connected accessories, nationwide charging infrastructure, and vertically integrated manufacturing. With a platform-first approach, Ather is building not just EVs, but the digital infrastructure that powers them.

Product Ecosystem

Ather’s E2W portfolio includes two product lines—the Ather 450 performance scooter series and the Ather Rizta convenience scooter series—spanning seven variants. In FY24, the company sold over 109,000 units, led by demand for the Ather 450X. The Rizta, introduced in May 2024, recorded 23,915 net bookings within weeks of launch.

Each vehicle is powered by Atherstack, the company’s proprietary software stack, which integrates features such as navigation, analytics, safety tools, and connectivity with charging infrastructure and accessories.

Software-Driven Mobility

The Atherstack platform differentiates every Ather vehicle through a modular, upgradeable software layer comprising firmware, middleware, HMI, mobile apps, and data platforms.

Users can access enhanced functionality via the Pro Pack, a one-time purchase that unlocks:

• Advanced ride assist (e.g., traction control, AutoHold)

• Real-time alerts and diagnostics

• Three years of connected services and OTA updates

This software-first model transforms every vehicle into a smart, evolving product, creating continuous engagement across the user lifecycle.

Accessories

Ather has developed a suite of integrated accessories designed to enhance utility, safety, and experience:

• Halo smart helmet: Wireless charging, immersive audio, seamless connectivity

• Tyre pressure monitors, side steps, seat covers, Frunk (front trunk)

• Rizta-specific add-ons: Multipurpose charger, storage organiser, and ergonomic backrest

All accessories are designed in-house for optimal compatibility and performance.

Charging Infrastructure

Ather established India’s first fast-charging network for 2Ws in 2018 and remains the leader in EV charging infrastructure.

As of March 31, 2024:

• 1,973 fast chargers and 510 neighbourhood chargers across 233 cities

• LECCS (Light Electric Combined Charging System) developed in-house and ratified as a national standard by BIS in 2023 and 2024

• Charging network open to all EVs using the LECCS protocol via the Ather Grid app

Ather’s approach enables infrastructure monetization while promoting industry-wide interoperability.

Manufacturing

Ather’s Hosur Factory currently produces 420,000 E2Ws and 379,800 battery packs annually, leveraging Industry 4.0 practices and smart automation.

Key features include:

• MES-integrated production

• 77 connected machines, 124 smart devices, 10,756 monitored parameters

• In-house manufacturing of batteries, powertrain, and controllers

The company is developing Factory 3.0 in Maharashtra to expand capacity to 1.42 million units per year by 2027.

In-House R&D

Ather designs 80% of key components—from battery management systems to mid-drive motors and chassis. This vertical integration improves quality, enhances unit economics, and reduces supply chain risk.

As of March 31, 2024:

• 230 suppliers, 99% localized component sourcing (excluding lithium-ion cells)

• R&D team of 701 engineers across three innovation centres

• Active development underway on a new scooter platform and a future motorcycle line

  

Distribution Experience

Ather operates an asset-light retail network, with 211 experience centres and 192 service centres across India and Nepal (as of March 31, 2024).

• 129 retail partners and 1 authorised distributor manage operations

• All staff undergo comprehensive training in EV servicing and customer interaction

• One company-owned experience centre in Bengaluru serves as a flagship

This network ensures that both discovery and post-sales servicing are consistent with the Ather brand experience.

End-to-End Integration

From design to delivery, Ather digitises the full value chain. Key systems include:

• Product Lifecycle Management (PLM) using Siemens Teamcenter

• Manufacturing Execution System (MES) and CRM

• Dealer Management System (DMS) integrated with lead capture and after-sales workflows

The digital foundation enables real-time data visibility and decision-making across the organization.

Ather is more than a vehicle manufacturer—it is a full-stack mobility platform that integrates hardware, software, infrastructure, and service into a cohesive, scalable system. With product innovation, design control, and infrastructure leadership, Ather is well-positioned to lead the electrification of India’s two-wheeler market and export this model globally.

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Business Model

Ather’s business model is engineered around four core pillars: vertical integration, software monetization, premium positioning, and capital-efficient scale. This strategy blends control over technology with flexibility in operations—enabling rapid innovation without heavy fixed overhead.

Here’s how it works—and why it scales in a fast-evolving electric mobility market.

Vertically Integration

Ather develops its key components—from the battery pack and BMS to the dashboard and vehicle control unit—entirely in-house. This end-to-end product control enables faster innovation cycles, better quality assurance, and tighter integration across hardware and software.

All products go through the Ather Product Development System (APDS), an internal quality framework requiring eight review stages before launch. By owning its core tech stack and adhering to APDS, Ather ensures reliability in performance, safety, and user experience.

This vertically integrated model also aligns with India’s “Make in India” push, supporting cost efficiencies and local sourcing. As of FY24, 99% of component procurement (by BOM value, excluding cells) was domestic.

Software-Defined Ecosystem

Ather’s digital engine is the Atherstack—a proprietary software platform that powers the E2W experience. It integrates with vehicle firmware, ride analytics, remote updates, safety alerts, and charging infrastructure.

Key stats from FY24:

• 64 features available through Atherstack

• 89% of E2W buyers opted for the Pro Pack, priced at ₹13,000–₹20,000

• 61% of users engaged weekly with connected features

• Atherstack contributed 6% of total revenue with an EBITDA margin of 56%

This recurring revenue stream complements hardware sales and drives brand stickiness through ongoing value delivery.

Premium Brand

While India's two-wheeler market is dominated by budget-first offerings, Ather has carved out a premium niche. Its scooters are priced above segment averages, but offer differentiation through:

• Proprietary software

• High-spec components

• Premium accessories

• India's largest fast-charging network for 2Ws

This positioning is further reinforced by curated experience centres and branded service stations. In FY24, average maintenance turnaround time was 4.7 hours, and ExpressCare (launched FY24) enabled 1-hour servicing.

Despite premium pricing, Ather scaled fast:

• 23,000+ units sold in FY22

• 92,000+ units in FY23

• 109,000+ units in FY24

Ather was India’s third-largest E2W brand by volume in FY24, according to CRISIL.

Capital-Efficiency

Ather takes a capital-light approach across the value chain, balancing ownership of critical IP with operational flexibility.

Distribution:
99% of Ather’s experience and service centres are retail partner-operated, not company-owned. This franchise-style setup reduces fixed costs while enabling rapid network expansion.

Manufacturing:
Ather selectively in-sources battery packs and key powertrain components, while leveraging third-party scale for inputs like lithium-ion cells and semiconductors.

Technology:
Ather’s MES, CRM, and DMS platforms digitize everything from procurement to post-sales, reducing friction across the operational stack.

Result:
Ather minimizes upfront capital commitments while maintaining control over the high-value parts of its business. It scales smarter—not just bigger.

The model compounds across all fronts:

• More E2Ws sold → more Atherstack subscriptions → higher software margins

• More retail partners → wider distribution → stronger brand visibility

• More charging points → better UX → stronger demand

• More scale → lower unit costs → higher gross margin leverage

As Ather expands its platform—new scooter and motorcycle lines, deeper Google integrations, and next-gen factories—it’s building a capital-efficient, software-driven mobility company optimized for scale.

Management Team: 

Tarun Sanjay Mehta – Co-Founder & CEO
Tarun Mehta co-founded Ather in 2013 and currently serves as Chief Executive Officer and Executive Director. A dual-degree graduate (B.Tech + M.Tech) in Engineering Design from the Indian Institute of Technology (IIT) Madras, Tarun brings over a decade of experience in electric vehicles. He leads Ather’s strategic direction across product, business, and growth.

Swapnil Babanlal Jain – Co-Founder & CTO
As Ather’s Chief Technical Officer and Executive Director, Swapnil Jain is responsible for long-term technology strategy, product architecture, and building Ather’s engineering culture. He holds a dual-degree (B.Tech + M.Tech) in Engineering Design from IIT Madras and has over 10 years of industry experience.

Niranjan Kumar Gupta – Non-Executive Director (HMCL Nominee)
Niranjan Gupta joined Ather’s Board as a Non-Executive Director in November 2020. He represents Hero MotoCorp Limited (HMCL), one of Ather’s key strategic investors. A chartered accountant, company secretary, and cost accountant by qualification, Niranjan is also the CEO of HMCL.

Nilesh Shrivastava – Nominee Director (NIIF II)
Nilesh Shrivastava represents National Investment and Infrastructure Fund II (NIIF II) on Ather’s Board. He joined in July 2022 and brings more than 25 years of experience in private equity, portfolio management, and banking. An alumnus of IIT Lucknow and IIM Calcutta, Nilesh previously held senior roles at the International Finance Corporation (IFC).

Investment

Ather Energy’s journey to its IPO has been marked by the backing of some of the world’s most sophisticated institutional investors, visionary founders, and marquee strategic partners—each aligned around a shared thesis: India’s EV transition will be led by premium, software-defined two-wheelers built with deep technology and local manufacturing at their core.

In a competitive electric mobility market, Ather Energy’s upcoming public listing marks the second pure-play EV IPO in India after Ola Electric—and signals investor confidence in capital-efficient, R&D-driven business models.

Early Investors & Strategic Anchors

Hero MotoCorp
India’s largest two-wheeler manufacturer, Hero MotoCorp, is Ather’s largest shareholder with a 38.19% stake (11.51 crore shares), acquired at an average price of ₹145.99. At the IPO’s upper price band, this stake is now valued at ₹3,694 crore—a more than 2.2x return, underscoring the value of strategic alignment and long-term capital support in India's electrification push.

Tiger Global – Internet Fund III
Tiger Global, among Ather’s earliest institutional backers, entered in 2015 via Internet Fund III Pte with an average share price of ₹38.58. The fund currently holds 6.56% (1.98 crore shares), valued at over ₹655 crore—representing a 7x return on investment. Tiger's early conviction helped catalyze Ather’s R&D and go-to-market strategy in its formative years.

GIC (via Caladium Investment)
Singapore’s sovereign wealth fund GIC joined Ather’s cap table in 2022 through Caladium Investment. With an average entry price of ₹204.24 and a 15.43% stake (4.65 crore shares), GIC’s holding is now valued at ₹1,493 crore, validating its long-term belief in India’s consumer and EV sectors.

NIIF (National Investment and Infrastructure Fund)
NIIF, India’s quasi-sovereign investment platform, also entered in 2022 with a 6.77% stake (2.04 crore shares) acquired at ₹183.71. At current valuations, this translates into a holding worth ₹655 crore, affirming the fund’s strategic bet on domestic innovation and EV infrastructure leadership.

Founders’ Holdings
Co-founders Tarun Mehta and Swapnil Jain each hold a 6.81% stake (2.06 crore shares), with average acquisition prices of ₹43.27 per share. Their holdings are now worth ₹659 crore each—showcasing not only financial upside, but also strong alignment with public market investors through significant skin in the game.

Public Market Transition

Ather’s IPO is not just a liquidity event—it’s a strategic inflection point. The capital raised will be used to:

• Scale manufacturing and R&D capacity, including the new Factory 3.0 in Maharashtra

• Expand charging infrastructure and digital platform capabilities

• Bolster working capital to meet surging demand across domestic and export markets

• Strengthen brand and retail presence through experience centres and service network enhancements

With a premium brand, deep technology stack, and full-stack product ecosystem, Ather’s IPO unlocks the next phase of growth—bringing its vision of intelligent, connected, and sustainable two-wheeler mobility to millions more in India and globally.

Competition

India’s two-wheeler market is one of the most consolidated auto sectors globally—with four legacy OEMs historically controlling over 80% of annual sales. However, the rise of electric two-wheelers (E2Ws) has disrupted the status quo, unlocking a new competitive front marked by rapid innovation, direct-to-consumer distribution, and tech-first product positioning.

Despite these dynamics, Ather Energy has emerged as the #3 E2W brand in India by retail sales in FY24, backed by a premium product offering, a vertically integrated platform, and a consistently updated product roadmap.

E2W Market Share Rankings (FY24)

Source: VAHAN, CRISIL MI&A, FY2024

Unlike traditional ICE markets dominated by price and mileage, the E2W segment competes on new axes:

• Acceleration, power delivery, and software integration

• Connected features like LTE, OTA updates, smart helmets

• Charging access and range reliability

• Brand experience and after-sales service

Ather Energy was an early mover in defining these new competitive dimensions. When legacy brands offered low-speed EVs, Ather’s launch of the 450 in FY19—comparable to ICE vehicles in acceleration—introduced a premium benchmark. That same year, Ather claimed ~11% of the market. As of FY24, it has sustained this market share despite intense competition from incumbents and new-age players alike.

Competitive Pressures

• Ola Electric leveraged a low-cost strategy, broad product portfolio, and fast retail expansion to capture over one-third of the E2W market in just two years. However, its rapid scale-up has also brought challenges in service, delivery, and consumer feedback—areas where Ather has maintained greater consistency.

• TVS and Bajaj, legacy OEMs with large ICE portfolios, have ramped up EV operations and gained share through models like iQube and Chetak. Yet, their EVs primarily leverage legacy platforms and dealer models, often lacking the depth of integration seen in Ather’s full-stack ecosystem.

• Ampere, after peaking at ~12% share in FY23, lost ground in FY24 as tech-forward brands intensified competitive offerings and consumers shifted expectations around performance and feature richness.

• Hero Electric and Okinawa, once dominant (~80% share in FY19), have witnessed major erosion due to slower tech adoption and weaker product differentiation.

Market Dynamics

The E2W market in India remains scooter-led, with scooters comprising over 98% of EV retail sales in FY24. Motorcycles, despite their dominance in ICE, remain a marginal share in EVs (~1% of EV sales) due to:

• Higher range anxiety for long commutes

• Lower storage and utility

• Slower rollout of compelling EV motorcycle options

Ather’s current positioning in the performance and convenience scooter segments via the 450 and Rizta lines allows it to stay focused on the largest, most electrified and fastest-growing portion of the E2W market.

Moats in a Crowded Market

Ather’s defensibility is rooted in a multi-layered advantage stack:

• Product Quality: Full-stack in-house design across chassis, software (Atherstack), and battery

• Brand Loyalty: High app engagement and Net Promoter Scores in a fragmented space

• Charging Access: India’s largest fast-charging network (Ather Grid) spanning 233 cities

• Retail Experience: Premium touchpoints through Experience Centres and ExpressCare servicing

While other brands have scaled on volume, Ather has maintained high user engagement, strong software monetization (6% of revenue), and capital efficiency through its asset-light distribution model.

As the E2W market matures, competition will only intensify—especially as ICE players ramp investments, and startups push for differentiation via AI, connectivity, and speed of iteration. However, Ather’s position is increasingly resilient. The company has shown it can navigate price-led entrants, legacy challengers, and new form-factor bets—while staying anchored to a clear product vision and superior customer experience.

Maintaining leadership in this high-stakes environment will require constant innovation and customer focus—but Ather’s track record suggests it’s built for this next phase.

Financials

Ather Energy’s growth trajectory reflects a strong push to scale premium electric two-wheelers (E2Ws) amid shifting subsidy structures, a maturing product line, and deliberate R&D-led cost optimization.

Revenue Performance

Ather's revenue from operations stood at ₹17,538 million in FY2024—a slight dip of 2% YoY, down from ₹17,809 million in FY2023. This decline was primarily due to the rollback of FAME II subsidies (reduced to ₹10,000/kWh in June 2023), which led to higher retail prices and lower per-unit revenue.

That said, Ather countered the subsidy shock with a robust portfolio refresh:

• New models like the Ather 450S and 450X (2.9 kWh) targeted lower price points.

• Flagship upgrades like the Ather 450X (3.7 kWh) and 450 Apex supported ASP recovery.

Unit volumes rose 19% YoY to 109,577 vehicles, indicating strong consumer uptake despite pricing volatility.

Revenue Mix

• Sale of Vehicles: 90%

• Software & Services (Pro Pack, Atherstack): 7%

• Stock-in-Trade (spares/accessories): 3%

Profitability

While Ather remains loss-making, margins have steadily improved:

• COGS per unit has declined consistently, supported by in-house design efficiencies and BOM optimization (e.g., 51% reduction in motor controller cost).

• Software monetization (₹1,074M in FY2024) contributed 6% of revenue with 89% of E2W owners opting for Atherstack—an encouraging sign for future gross margin uplift.

Cost Structure

Despite a high-tech hardware-software stack, Ather is capital efficient relative to peers:

• R&D spend: ₹2,365M in FY2024 (13% of revenue)—down as % of revenue over three years due to scalable platforms.

• Employee expense: ₹3,692M (21% of revenue) reflecting the premium design and engineering-led approach.

• Other operating expenses: ₹4,375M (24% of revenue), driven by marketing and warranty provisioning.

Cash Burn & Investments

Ather maintains a lean burn rate with a cumulative cash burn ratio of 0.8—lower than domestic/global peers.

Planned expansions include:

• Factory 3.0 in Maharashtra: Expected to increase capacity to 0.92M units/year by FY2027.

• R&D infrastructure upgrades: Product Validation Lab launched in Bengaluru.

• Vertical integration: Expansion of in-house electronics, transmission, and painting units to reduce COGS further.

Market Exposure

• Government subsidies under the FAME scheme dropped from 28% of revenue in FY2023 to 16% in FY2024—demonstrating growing independence from policy support.

• Supply chain localization: 99% domestic sourcing (ex-lithium cells) shields Ather from global logistics shocks.

• ASP Stability: Revenue per unit has remained steady (~₹143K in FY2024), despite macro and policy shifts.

With the E2W market forecasted to grow at a 41–44% CAGR through FY2031, Ather is well-positioned to capture share through:

• Expanded product range (Ather Rizta and upcoming EL platform)

• Deeper penetration via its 211 experience centers and 2,483 charging points

• Continued software integration and monetization

While FY2024 still shows a net loss of ₹10,597M, Ather's narrowing burn, growing volumes, and rising software revenue offer a credible path toward breakeven.

Closing thoughts

Ather Energy is shaping up to be a category-defining force in India’s electric two-wheeler (E2W) market—delivering a vertically integrated product ecosystem, premium user experience, and increasing operational scale. With 109,577 units sold in FY2024, 211 experience centers, and nearly 2,500 charging stations, Ather is not just selling scooters—it’s building a long-term platform for electric mobility in India.

The bull case rests on sustained volume growth, deepening software monetization, and continued gross margin expansion. Despite subsidy reductions, Ather maintained revenue stability and improved unit economics—driven by platform reuse, BOM cost optimization, and growing adoption of high-margin Atherstack software. The recent launch of Rizta broadens the addressable market, while upcoming initiatives like Factory 3.0 and domestic battery tie-ups could reduce COGS and accelerate break-even. With India’s E2W market forecasted to grow at 40%+ CAGR through FY2031 and a 11.5% current market share, Ather has room to scale, especially if it continues to lead on design and user experience.

The bear case focuses on near-term margin pressure, intensified competition from both Ola Electric and legacy ICE players like TVS and Bajaj, and the fading tailwind of government subsidies. FY2024’s net loss of ₹10,597 million and EBITDA margin of –36% underscore the operational challenge of scaling premium EVs in a price-sensitive market. Maintaining ASPs while pushing volume will require flawless execution across distribution, pricing, and customer experience.

Yet, in a market still early in its electrification curve, Ather’s capital-efficient model, hardware-software synergy, and clear brand positioning make it one of the few EV players with true defensibility. As India transitions from early adopters to the mass market, Ather’s hybrid DNA of engineering depth and ecosystem strategy gives it a differentiated, scalable edge in a rapidly evolving mobility landscape.

Here is my interview with Shubham Khoker, who was the Head of Growth at Topmate. Topmate.io is a fast-growing online platform that connects freelancers and clients, he used to lead the growth strategy and execution for the company.

In this conversation, Shubham and I discuss:

• How do you differentiate between growth sales and traditional sales in terms of team mindset?

• What’s one growth tactic that’s incredibly effective but often overlooked by companies?

• What role does product-led growth play at TopMate.io

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