After months of a subdued primary market, Ather Energy is poised to recharge India’s IPO landscape. The electric two-wheeler (E2W) startup is launching a ₹2,982 crore public issue, comprising a fresh issue of ₹2,626 crore and an offer for sale by early backers like Tiger Global and NIIF. Priced at ₹321 per share (upper band), the IPO pegs the company’s valuation at ₹11,956 crore—substantially lower than the ₹20,000 crore it originally aimed for in 2024. On day 2, the uptake has been a bit slow.
As the second pure-play EV company after Ola Electric to list on Indian bourses, Ather’s journey is emblematic of the shifting gears within India’s mobility revolution, and as such their tale is an interesting one.
Navigating Headwinds and Shifting Gears
Ather’s IPO not only breaks a two-month lull in the IPO market. The broader IPO market has been in a slump; only ₹15,723 crore has been raised across 9 issues so far in 2025, starkly down from ₹1.6 lakh crore raised by 91 firms in 2024. Amid this, Ather’s listing is both a high-stakes bet and a potential shot in the arm.
Originally conceived as a disruptor in the E2W segment, Ather’s fortunes are now intertwined with how it scales operations and staves off competition from Ola Electric, TVS, and Bajaj. With just 10.7% market share and 1.08 lakh units sold in 9MFY25, Ather trails Ola’s commanding 34% market share and 3.08 lakh units sold.
Yet, numbers only tell part of the story. Ather’s focus on the premium segment, asset-light model, and robust EV infrastructure position it uniquely in a saturated yet fast-evolving market.
Fueling the Future: Strategy Beyond the IPO
Ather plans to deploy ₹927 crore from the IPO proceeds to set up a new factory, more than doubling its production capacity to 1 million units annually. An additional ₹750 crore will be channelled into R&D to sharpen its competitive edge and further innovations, especially in software and battery management systems.
Unlike Ola, Ather doesn’t manufacture its own battery cells—choosing flexibility and premiumisation over vertical integration. It has also made headway with its proprietary charging infrastructure, Ather Grid, which is now the largest fast-charging network for 2Ws in India. These investments enhance customer experience and build brand stickiness.
Another differentiator is its retail model. With 277 experience centres and 236 service points—mostly third-party owned—Ather’s capital-light expansion strategy enables it to scale without bloating operational costs.
Riding High on Margins, But Losses Persist
Financially, Ather reported revenue of ₹1,754 crore in FY24, marginally down from ₹1,781 crore the previous year. However, gross margins have improved significantly, doubling to 19% in 9MFY25. Despite this, losses have widened—from ₹344 crore in FY22 to ₹865 crore in FY23, and further to ₹1,060 crore in FY24.
This highlights the classic startup dilemma: invest for scale, or prioritise profitability. For now, Ather is firmly in growth mode, betting that scale and premium positioning will eventually flip the bottom line.
However, its heavy reliance on South India—accounting for 61% of revenue—could pose a risk. While the company is now focusing on geographical diversification, time will tell if it can successfully build pan-India traction.
What’s Next?
Ather’s IPO marks a milestone not just for the company, but for India’s broader EV ecosystem. As the government pushes for cleaner mobility, and legacy automakers ramp up their EV bets, the race is on for mindshare, market share, and ultimately—survival.
For Ather, going public isn’t the destination. It’s a high-voltage checkpoint on a long and winding road, fraught with competition, capital burn, and consumer fickleness. Whether it thrives or stalls will depend on its execution post-IPO—scaling fast, innovating faster, and convincing the market that there’s room for more than just one EV poster child.
