Hello friends, In the world of electric mobility, we often hear about startups burning cash and struggling to find their ground. But every now and then, a company makes a comeback so strong that it catches everyone’s attention. One such inspiring story is that of Ather Energy, a homegrown electric two-wheeler manufacturer, which is now riding high on success after years of persistence and innovation. And it all comes together in their recently filed Red Herring Prospectus (RHP) ahead of their much-awaited Rs 2,981-crore IPO.
Let’s take a closer look at how Ather is not just turning its balance sheet around but also winning over Indian families with its all-new Rizta scooter.
A Sharp Financial Turnaround That Inspires Confidence
Ather Energy’s RHP tells a story of resilience and smart decision-making. In the first three quarters of FY25, the company reduced its net loss significantly—from Rs 286 crore in Q1 to Rs 110 crore in Q3. That’s a commendable 26% improvement compared to the same period last year. The total loss for the nine-month span stood at Rs 578 crore, and for a sector known for high initial burn, that’s a big step in the right direction.
So, what’s behind this positive change? Ather has been focusing on making its operations more efficient. They’ve brought down battery cell costs, offered a better product mix, and successfully improved their margins. These efforts helped them double their adjusted gross margin to 19%, while also cutting their EBITDA loss by a third. It’s safe to say the company is no longer just chasing scale, but also sustainability and profitability.
Rizta: The Scooter That Changed Everything
2024 was a big year for Ather, thanks to the launch of its family-friendly scooter—Rizta. Unlike the company’s earlier 450 series which catered mainly to performance lovers, Rizta was built keeping the Indian family in mind. It’s practical, comfortable, and stylish—a combination that clicked instantly with buyers across the country.
In fact, in Q4 FY25 alone, more than one-third of Ather’s 50,000 units sold were Riztas, as per VAHAN data. This helped Ather grow its market share to 15%, a solid 4% jump in just one quarter. For a company trying to expand its appeal, Rizta seems to be the magic ingredient.
Reaching New Homes, New Cities
Ather was once a southern stronghold, but that’s changing fast. Thanks to Rizta’s mass-market appeal, the company has expanded aggressively into the western and northern parts of India. States like Maharashtra and Gujarat have shown exceptional growth—Gujarat hit a market share of 25% in December alone, while Maharashtra crossed the 10% mark. Even Delhi and Uttar Pradesh, once elusive markets for Ather, are now warming up to the brand.
This geographical expansion is backed by a rapidly growing distribution network. Ather now boasts 311 experience centres across 218 cities, up from just 178 a year ago. And let’s not forget their fast-charging infrastructure—Ather Grid, which has now crossed 4,100 touchpoints, making long-distance electric travel a real possibility for users.
What’s Next: New Products, Bigger Dreams
The future looks even more exciting. Co-founder Tarun Mehta revealed during an IPO roadshow that the company is working on new product platforms. “EL” will serve as the base for multiple new scooters, while “Zenith” is aimed at building a brand-new range of electric bikes. These platforms promise to offer more choices to different types of users, from daily commuters to biking enthusiasts.
The Big IPO: Fuel for Expansion and Innovation
Ather’s upcoming IPO is set to be a major milestone. With a total issue size of Rs 2,981 crore, including a fresh issue of Rs 2,626 crore, the company is aiming to raise funds for several key initiatives. About Rs 927 crore will go into setting up a new manufacturing plant in Maharashtra, Rs 750 crore is earmarked for R&D, and Rs 300 crore will be used for marketing. A part of the proceeds will also help reduce debt, giving the company a cleaner financial slate as it goes public.
At the top price band, Ather’s valuation stands at Rs 11,956 crore, underlining investor confidence in its growth story.
In Conclusion: Ather’s Journey from Startup to Strong Contender
Ather Energy’s story is more than just numbers and products—it’s about belief, strategy, and connecting with people. With the Rizta capturing hearts and their IPO setting the stage for the next big leap, Ather is no longer just an electric vehicle brand—it’s becoming a household name. For anyone who’s ever rooted for Indian innovation, this is one company worth watching.