{"id":12322,"date":"2025-04-26T12:41:18","date_gmt":"2025-04-26T07:11:18","guid":{"rendered":"http:\/\/43.205.138.160\/?post_type=article&p=12322"},"modified":"2025-04-26T12:41:18","modified_gmt":"2025-04-26T07:11:18","slug":"ather-energys-ipo-can-it-sell-more-than-just-scooters","status":"publish","type":"article","link":"https:\/\/signalz.pro\/article\/ather-energys-ipo-can-it-sell-more-than-just-scooters\/","title":{"rendered":"Ather Energy\u2019s IPO: Can It Sell More Than Just Scooters?"},"content":{"rendered":"

Shashank Bansal\u00a0<\/a><\/strong><\/p>\n

Sebi Registered Research Analyst | Education | Entrepreneur | Algorithmic Trader & Investor | Stock Market Trainer<\/strong><\/p>\n

April 26, 2025<\/strong><\/p>\n

We dive into why electric two-wheeler startup Ather Energy<\/strong> is stepping into the public markets<\/strong> \u2014 and why its real challenge isn\u2019t just building scooters, but selling a vision<\/strong>.<\/p>\n

The Story<\/strong><\/p>\n

India moves on two wheels<\/strong> \u2014 whether it\u2019s bicycles, scooters zipping through traffic, or animal carts on village roads. And it makes perfect sense: two-wheelers are more affordable<\/strong>, easier to maintain, and ideally suited to India’s bustling streets. You can maneuver through lanes, park easily, and beat cars stuck at traffic lights.<\/p>\n

No wonder India is the world\u2019s largest two-wheeler market<\/strong>, selling 18.4 million units<\/strong> in FY24<\/strong>. With the rise of electric two-wheelers (E2Ws)<\/strong> offering sleek features<\/strong>, cleaner emissions<\/strong>, and government subsidies<\/strong>, the trend is only growing.<\/p>\n

Take my brother, for example. He debated for months between a petrol scooter (ICE)<\/strong> and an electric vehicle (EV)<\/strong>. Although he initially leaned toward petrol, the allure of a feature-packed EV<\/strong> won him over.<\/p>\n

Enter Ather Energy<\/strong> \u2014 the homegrown brand founded by IIT alumni Tarun Mehta and Swapnil Jain<\/strong>.<\/p>\n

Ather isn\u2019t just another EV maker. It\u2019s striving to create a premium brand experience<\/strong>. When it launched the Ather 450<\/strong> in 2018, it brought India its first electric scooter<\/strong> with a top speed of 80 kmph<\/strong>, along with connected features<\/strong> and cloud integration<\/strong> through a 3G SIM card<\/strong>. Instead of the low-cost, mass-market route<\/strong> like Ola<\/strong> or Hero<\/strong>, Ather aimed to be the “Apple of scooters”<\/strong> \u2014 clean design<\/strong>, smart dashboards<\/strong>, premium feel<\/strong>.<\/p>\n

Now, Ather is preparing for a \u20b92,980 crore IPO<\/strong> set for April 28th<\/strong>. About \u20b9354 crore<\/strong> will be an Offer for Sale (OFS)<\/strong>, while \u20b92,626 crore<\/strong> will be a fresh issue<\/strong> to fuel growth<\/strong>, reduce debt<\/strong>, and survive the EV price wars<\/strong>.<\/p>\n

But here\u2019s the kicker: building a premium brand costs money<\/strong> \u2014 a lot of it. Ather reported losses of \u20b91,062 crore<\/strong> in FY24<\/strong>, with cumulative losses over \u20b92,200 crore<\/strong> between FY22\u201324<\/strong>. Worse still, Ather currently loses money on every scooter sold<\/strong>.<\/p>\n

In the world of E2Ws, unit economics<\/strong> is everything. You need scale<\/strong>, lower costs<\/strong>, and smarter engineering<\/strong> to turn profitable.<\/p>\n

In FY24<\/strong>, Ather reduced its scooter bill of materials by 20\u201330%<\/strong> by manufacturing components like motor controllers (51% cheaper)<\/strong> and belt drives (16% cheaper)<\/strong> in-house.<\/p>\n

With the IPO proceeds, Ather plans to invest:<\/p>\n