Ather Energy Eyes IPO At $2 Billion Valuation

Ather Energy is reportedly working on exploring an Initial Public Offering (IPO) in India. NDTV Profit reported that the company held meetings with investment bankers to discuss its plans for the public listing. The Hero Moto Ccorp-backed electric two-wheeler company plans to raise about $400 million, targeting a valuation of $2 billion. 

Currently, Hero Moto Corp owns about 39 percent of Ather Energy. The primary source of revenue for Ather Energy comes from the sale of scooters and after-sales and subscription services making up for some portion of its operating income as well. Financially, Ather has been performing well with its revenue recording a significant jump from ₹413 crore in FY22 to ₹1,806 crore in FY23. 

Ather Energy competes against the likes of Ola Electric and TVS Motor Company. Earlier in December 2023, Ola Electric had also announced its plans for IPO. The maker of the Ola S1 Pro electric scooter plans to raise ₹5,500 crore, and it is termed to be one of the largest share sales from an electric two-wheeler company in India. 

Meanwhile, on the product front, Ather Energy is working to introduce its first family electric scooter. Slated to be called Rizta, it will be built on the same platform that underpins the Ather 450 scooters - its launch is slated to take place in the coming months, the details of which are yet to be disclosed. However, the company recently partnered up with Indian comedian Anubhav Singh Bassi to give audiences a sneak peak of the upcoming family e-scooter. Check out more details here.