About Ather Electric Scooters
Ather Energy is a prominent Indian electric vehicle (EV) company specializing in electric scooters. Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather has significantly impacted the Indian EV market through its innovative products and strategic growth initiatives.
Founding and Early Years (2013-2015)
Ather Energy was founded in October 2013 at the Indian Institute of Technology-Madras Research Park by Tarun Mehta and Swapnil Jain, who envisioned a future powered by clean energy. In December 2014, Flipkart founders Sachin Bansal and Binny Bansal invested $1 million as seed capital, providing the initial financial boost needed for development. By May 2015, Ather had secured an additional $12 million from Tiger Global to further its development, testing, and production efforts.
Product Development and Launch (2016-2018)
Ather unveiled its first electric scooter, the S340, on February 23, 2016, at the Surge technology conference in Bangalore. This period also saw significant investments, including ₹180 crore (US$24 million) from Hero MotoCorp in October 2016, which helped Ather scale up production. The company launched the Ather 450 in September 2018, marking its entry into the market with a premium electric scooter.
Expansion and Growth (2019-2021)
In May 2019, Ather raised $51 million in a funding round led by Sachin Bansal’s $32 million investment. By December 2019, Ather had signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up a 400,000 sq. ft. manufacturing plant in Hosur. The Hosur plant began operations on January 2, 2021, significantly boosting Ather’s production capacity. During this period, Ather expanded its presence to 27 cities across 15 states and established over 1000 fast charging points in 80+ cities.
Recent Developments and Future Plans (2022-2024)
Ather continued to innovate and expand its product line with the launch of the Ather 450X on January 28, 2020, and the Ather 450X 3 on July 19, 2022. The company has also focused on increasing its manufacturing capacity, aiming to produce 450,000 e-scooters annually by expanding its Hosur plant. In 2023, Ather began selling its scooters in Nepal and plans to enter Southeast Asia, Latin America, and Europe.
Ather has raised $578.3 million in funding over 11 rounds, with significant contributions from investors like Hero MotoCorp, Tiger Global, and Flipkart co-founder Sachin Bansal. The company has also filed 212 patents in India and five internationally, underscoring its commitment to innovation.
Strategic Initiatives and Market Impact
Ather Energy has prioritized sustainability and innovation, from electric vehicles to manufacturing practices. The company offers a comprehensive EV ecosystem, including charging stations and after-sales service, significantly boosting the Indian EV industry. Ather’s innovative marketing strategies and focus on customer experience have increased consumer awareness and acceptance of electric vehicles in India.
Challenges and Opportunities
Despite its successes, Ather has faced challenges such as supply chain disruptions, increased raw material costs, and a chip shortage, impacting its profitability and production timelines. However, the company remains optimistic about the future, with plans to ramp up production and fully utilize its annual output capacity by the end of 2023.
Timeline of Key Milestones
- October 2013: Ather Energy was founded at IIT-Madras Research Park.
- December 2014: $1 million seed capital from Flipkart founders.
- May 2015: $12 million investment from Tiger Global.
- February 2016: Unveiling of the first scooter, S340.
- October 2016: ₹180 crore investment from Hero MotoCorp.
- September 2018: Launch of Ather 450.
- May 2019: $51 million funding round led by Sachin Bansal.
- December 2019: MoU with Tamil Nadu Government for Hosur plant.
- January 2021: Hosur plant begins operations.
- January 2020: Launch of Ather 450X.
- July 2022: Launch of Ather 450X 3.
- 2023: Expansion to Nepal and plans for Southeast Asia, Latin America, and Europe.
- 2024: Submission of draft papers to SEBI for IPO.
