Funding · Mobility & Logistics

Ather Energy drops $250M unicorn round plans

By Startup Enthusiast · 25 August 2023

What they do

Ather Energy makes electric scooters and charging infrastructure

It dropped plans for a $250M round that would have valued it at $1.3B, and will instead seek a smaller rights issue from existing backers

The decision reflects a funding winter and slowing EV sales, forcing startups to accept lower valuations

Ather Energy has dropped plans to raise a $250M funding round.
That round would have valued the company at $1.3B, making it a unicorn (startup valued over $1 billion).
Instead, the company is expected to seek far less than $250M from its current backers, which would increase their shareholding.
The new round will likely be a rights issue (offering shares to existing shareholders) at a flat or lower valuation.
The decision is driven by a funding winter (a period of reduced investment) and slowing EV sales.
In February 2023, Ather had been in talks with new and existing investors for the $250M round, which included a significant secondary sale (existing shareholders selling their shares).

Slowing sales of electric vehicles have hurt investor confidence in the EV sector.
The company has raised over $340M in total so far.

Ather's scooters are known for their smart features like a touchscreen dashboard and over-the-air updates.
It competes with Ola Electric, Hero Electric, and TVS in the Indian EV two-wheeler market.