Indian electric vehicle maker Ather Energy clocked a consolidated revenue of Rs 1,753 crore, which was 1.7 percent lower Year-on-Year (YoY) in the financial year 2024 amid rising competition, subsidy reduction, and overall slowdown in the market due to macroeconomic pressure.
"Turnover of Ather Energy for the year ended March 31, 2024 was Rs. 1,753.8 crore," showed regulatory filings by Ather’s largest investor HeroMotocorp on NSE on June 6.
HeroMotocorp also said it will acquire an additional 2.2 percent stake in Ather Energy for Rs 124 crore.
Ather's flat revenue comes when the EV firm reported a 337 percent in its operating revenue to Rs 1,784 crore. However, losses increased by 150 percent to Rs 864 crore in FY23.
While speaking to Moneycontrol in April 2024, Ather’s CEO Tarun Mehta indicated that the firm was impacted due to the macroeconomic slowdown.
“We were looking to increase our capacity, we were in the planning stage, however, the industry encountered a slowdown with subsidy being reduced… So we delayed signing up new capacity creation. The current capacity is sufficient for this year and probably early next year as well,” Mehta told earlier.
As of April 2024, Ather is among the top four electric scooter manufacturers in India along with Ola Electric, TVS and Bajaj Auto. However, the competition is getting tight in the market.
Ola Electric, the current market leader in the space, slashed prices of its two-wheeler scooters by around Rs 25,000 per unit last week, resulting in a jump in sales of around 10,000 scooters in just three days.
Similarly, TVS has also been increasing its market share from 7-8 percent last year to around 20 percent presently.
The government’s reduction in FAME subsidy has also impacted the sector.
The Central government reduced the budgetary allocation for the FAME scheme by nearly 44 percent to Rs 2,671 crore for FY25, which industry players predict could result in a slowdown in the adoption of EVs.
Ather Energy in May raised Rs 286 crore ($34 million) through a mix of debt and equity, largely through venture debt, and through co-founders, as it prepares to go public by 2025.
Venture debt firm Stride Ventures has invested close to Rs 200 crore via debentures, while co-founders of the company Tarun Sanjay Mehta and Swapnil Jain pumped in Rs 43.28 crore each via Series F preference shares.
Ather is looking to tap the public market by 2025 and has picked HSBC Holdings Plc, Nomura Holdings Inc. and JPMorgan Chase & Co. to help arrange its initial public offering.
Founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather Energy has till date sold over 1.73 lakh electric scooters and is backed by HeroMoto Corp, Tiger Global and GIC.
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