Funding · Mobility & Logistics

Ather Energy raises ₹900 crore via rights issue

By Startup Enthusiast · 22 September 2023

What they do

Ather Energy raised ₹900 crore (~$108 million) via a rights issue from Hero MotoCorp and GIC

The funds will be used for new product launches, charging infrastructure expansion, and retail network expansion

FY23 operating revenue rose 4.3-4.36X to Rs 1,783-1,784 crore, while net loss increased 2.5X to Rs 864-864.5 crore

Ather Energy raised ₹900 crore (~$108 million) via a rights issue from Hero MotoCorp and GIC.
The company's FY23 operating revenue jumped to ₹1,783-1,784 crore, up 4.3-4.36X from ₹408 crore in FY22.
Its net loss widened to ₹864-864.5 crore, more than 3.5X the ₹344 crore loss in FY22.
Total expenses rose 3.5X to ₹2,670.6-2,671 crore in FY23.
Scooter sales revenue was ₹1,643 crore, the primary income source.
In August 2023, Ather sold 6,835 scooters versus Ola Electric's 17,389.
Earlier in 2023, Ather planned a $250 million raise at a $1.3 billion valuation but deferred it due to the funding winter and FAME-II subsidy rollback.

The rights issue comes as Ather's losses grew faster than revenue, though its EBITDA margin improved from -61.84% to -38.29%.
Rival Ola Electric reported an FY23 operating loss of $136 million on $335 million revenue, and is now the largest electric scooter seller in India.
Ather's expense per rupee of operating revenue improved to ₹1.50 from ₹1.86 in FY22.
The company's cash outflows from operations rose 3.8X to ₹870 crore in FY23.

Ather Energy designs and manufactures electric scooters for the Indian market.
Its product line includes the Ather 450X (flagship) and Ather 450S (entry-level), with battery options of 2.9 kWh and 3.7 kWh.
In August 2023, it launched three new models: Ather 450S, Ather 450X Gen 3.1, and Ather 450X Plus.
The company operates over 200 retail touchpoints across more than 100 cities in India.
It has built a public fast-charging network of over 1,500 Ather Grids.
Revenue comes primarily from scooter sales (₹1,643 crore in FY23), with some non-operating income from interest and investments.

Ather plans to use the raised funds for new product launches, charging infrastructure expansion, and retail network expansion.
CEO Tarun Mehta said the round will allow the company to expand its product portfolio and footprint.

Hero MotoCorp (lead) — Hero MotoCorp is a major Indian two-wheeler manufacturer and an existing investor in Ather Energy.
GIC (lead) — GIC is Singapore's sovereign wealth fund and an existing investor in Ather Energy.

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