Revenue stagnant, losses mount as EV firm Ather Energy prepares for IPO

IANS April 25, 2025 371 views

Ather Energy, a pioneering Indian electric two-wheeler startup, is preparing for its IPO despite continuous financial challenges. The company has never reported a profit since its 2013 founding, with mounting losses reaching Rs 1,059.7 crore in the recent financial year. Interestingly, the co-founders are poised to gain massive returns through the share sale, even as the company struggles with revenue stagnation. The IPO raises critical questions about the sustainability of India's electric vehicle market and Ather's long-term business strategy.

"Despite being one of the first to launch electric scooters, Ather lags behind bigger rivals" - Industry Analysis
New Delhi, April 25: The electric two-wheeler maker Ather Energy is set to launch its initial public offering (IPO) on April 28, but industry experts on Friday raised eyebrows over the company’s continued losses and lack of revenue growth.

Key Points

1

Ather Energy reports Rs 1,059.7 crore pre-tax loss in FY24

2

Founders set to gain 1,400% return despite company's financial struggles

3

IPO worth Rs 2,981 crore opens April 28

4

Revenue remains flat at Rs 1,753.8 crore

Despite being one of the early players in India’s EV space, Ather has never reported a profit since it was founded in 2013 by Tarun Mehta and Swapnil Jain.

The company’s red herring prospectus (RHP) states that it has been making losses every year and there is no certainty about becoming cost-effective or profitable anytime soon.

In the financial year 2023–24, Ather Energy reported a pre-tax loss of Rs 1,059.7 crore. This is a sharp increase from its Rs 864.5 crore loss in FY23 and Rs 344.1 crore in FY22 -- showing a widening gap in its financial performance.

At the same time, its revenue in FY24 stood at Rs 1,753.8 crore, slightly lower than the Rs 1,780.9 crore it posted in FY23.

The upcoming IPO, worth Rs 2,981 crore, includes an offer for sale (OFS) of shares worth Rs 355 crore. Ather’s co-founders will offload 19.6 lakh shares, gaining huge returns.

Their average cost of acquiring shares was just Rs 21.09 per share. If the IPO is priced at the upper end of the Rs 304-321 band, they are set to earn gains of over 1,400 per cent -- even though the company itself is not making money.

Despite being one of the first to launch electric scooters in India back in 2018, Ather lags behind bigger rivals like Ola Electric -- which itself is facing headwinds in the market.

Ather’s IPO will remain open for subscription till April 30. The shares will be listed on the Bombay Stock Exchange (BSE) and NSE.

However, the company’s struggle to grow amid fierce competition raises serious questions about its business model and future.

Reader Comments

R
Rahul K.
This is concerning. Founders making 1400% gains while the company keeps losing money? Feels like retail investors might get burned here. I'll wait to see how the market reacts post-listing.
P
Priya M.
I own an Ather scooter and love it! But these financials are worrying 😬 Maybe they should focus on improving sales before going public? The product is great but needs better marketing.
A
Ankit S.
EV sector is the future but companies need sustainable business models. Burning cash year after year isn't sustainable, no matter how good the tech is. Hope they have a solid turnaround plan!
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Sanjana P.
Respectfully, this IPO seems premature. Revenue stagnant while losses grow 3x in 2 years? I appreciate their innovation but investors deserve more transparency about the path to profitability.
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Vikram J.
Early adopters always face challenges. Tesla took years to become profitable too. Ather makes quality products - might be worth the long-term bet if you believe in India's EV growth story 🚀
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Neha R.
The service experience is top-notch compared to other EV brands. Maybe that's where all the money is going? 😅 Jokes aside, hope they can balance customer experience with financial health.

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Tags:
Ather Energy Electric Vehicles IPO Tarun Mehta Indian Startup EV Sector