India’s EV maker Ather joins elite unicorn club

• Issues 165,28,925 Series G compulsory cumulative preference shares at an issue price of Rs363 each.

Ather Energy, a prominent manufacturer of electric scooters in India, has solidified its status as a member of the esteemed unicorn club following a substantial funding round that raised $71 million from the National Investment and Infrastructure Fund (NIIF).

The milestone reflects the growing interest and investment in sustainable transportation solutions as the world shifts towards greener alternatives.

The strategic move by Ather Energy involved the issuance of 165,28,925 Series G compulsory cumulative preference shares at an issue price of Rs363 each, aiming to accumulate Rs600 crore (approximately $72 million).

The financial maneuver has not only positioned Ather Energy with a post−allotment valuation of $1.25 billion but has also garnered significant backing from existing investors, notably Hero MotoCorp, which maintains its status as the largest external stakeholder with a 38.11 per cent ownership stake.

Competitive market

Despite these promising developments, Ather Energy faces challenges in an increasingly competitive electric two-wheeler market.

In the first quarter of fiscal year 2025, the company reported revenues of Rs339 crore but simultaneously incurred a net loss of Rs183 crore.

Ather’s market share in the electric two-wheeler segment decreased to 9 per cent, down from 11 per cent in the preceding fiscal year. In contrast, rivals such as Ola Electric and TVS Electric have experienced growth, with Ola commanding a significant 42 per cent market share in the same period.

The competitive landscape presents both challenges and opportunities for Ather Energy. As it navigates financial performance concerns and market share dynamics, its status as a unicorn underscores the potential for innovation and growth within the electric vehicle sector.

The continued support from investors like NIIF and strategic partnerships will be crucial as Ather Energy strives to regain market share and enhance its operational efficiency in a rapidly evolving marketplace.