Introduction
Ather Energy, a prominent player in the electric two-wheeler market, is on the verge of expanding its footprint with new investments. The National Investment and Infrastructure Fund (NIIF) has received the green light from the Competition Commission of India (CCI) for a significant stake increase in Ather Energy. This momentous approval was granted under the CCI’s Green Channel route, a process designed for transactions that do not adversely impact market competition.
Investment Details
The Indo-Japan Fund (IJF), managed by NIIF, is set to acquire certain Series G compulsorily convertible preference shares of Ather Energy. This fund uniquely targets investments centered on environmental sustainability and endorses low-carbon emission strategies. Additionally, it aims to foster Japanese companies’ investment interests within the Indian market.
Strategic Importance
This investment is pivotal for the Indo-Japan Fund as it aligns with their mission to enhance the electric two-wheeler market in India. The focus remains on creating value in clean mobility transport solutions and technological advancements for last-mile transport vehicles, essential for a sustainable future.
Ather Energy: A Unicorn Journey
Having recently achieved unicorn status, Ather Energy closed a funding round of ₹600 crore (approximately $71 million) led by NIIF. This milestone has positioned Ather as the fourth unicorn in India for the year and the second within the mobility sector. NIIF’s initial investment in Ather occurred in May 2022, and the continued support reflects a growing confidence in the company’s potential.
Financial Performance
Despite reaching unicorn status, Ather Energy reported a widening loss of over 22% in FY24, amounting to ₹1,059 crore, up from ₹864 crore the previous year. Interestingly, the company’s revenue has seen modest growth, standing at ₹1,789 crore, slightly up from ₹1,783 crore year-on-year. In June, the company made a strategic move towards becoming a public limited entity, signaling intentions to list on the stock market in the near future.
| Metrics | FY23 | FY24 |
|---|---|---|
| Loss | ₹864 crore | ₹1,059 crore |
| Revenue | ₹1,783 crore | ₹1,789 crore |
Conclusion
Ather Energy’s journey highlights the immense potential in the electric mobility sector in India. Backed by strategic investments and an urgent focus on sustainability, the company is poised for growth, despite its current financial challenges. As Ather Energy navigates this pivotal phase, stakeholders eagerly watch how its innovations and engagements will shape the future of electric transport in India.
