Ather Energy: Overview and Operational Insights
About Ather Energy
Ather Energy, a Bangalore-based electric two-wheeler manufacturer, was founded in 2013 by Tarun Mehta and Swapnil Jain. The company unveiled its first scooter, the S340, on February 23, 2016, at the Surge technology conference in Bengaluru. In October 2016, Hero MotoCorp made a significant investment of ₹180 crore in Ather during its Series B funding round.
Since then, Ather Energy has steadily grown in the Indian market. In December 2019, the company signed a memorandum of understanding (MoU) with the Tamil Nadu government to build a 400,000-square-foot manufacturing plant in Hosur. In 2020, Ather expanded its product lineup with the introduction of the Ather 450X and Ather 450 Plus.
Ather Energy operates a fast and extensive charging network called Ather Grid, which features over 2,000 fast-charging points across more than 170 cities in India. The network is designed to offer quick recharges, providing up to 15 km of range for every 10 minutes of charge. Most Ather Grid stations are free to use, except in states like Karnataka, Kerala, Delhi, Telangana, Maharashtra, Haryana, and Tamil Nadu.
Founders and Team
Tarun Mehta and Swapnil Jain founded Ather Energy right after their college days, with the vision of replacing internal combustion engines with electric drive technology. Tarun Mehta holds a degree in Engineering Design from IIT Madras and has been involved in numerous product development projects, holding six co-patents. Swapnil Jain conceptualized and launched Ather Energy in April 2013.
Both founders were recognized in Forbes’ 30 Under 30 in 2018 and Fortune’s 40 Under 40 in 2017 and 2019 for their innovative contributions to the Indian automotive industry.
Unique Selling Proposition (USP) and Key Features
Ather Energy’s main USP lies in its advanced electric scooter technology. The brand is renowned for its cutting-edge technology in electric two-wheelers. Key features of Ather Energy scooters include:
- Trip Planner: This feature helps users plan their journeys, factoring in current charge, distance, and estimated range based on past riding patterns.
- Map Location Sharing: Integrates Google Maps for seamless navigation and allows users to share locations via apps like WhatsApp.
- Five-Year Battery Warranty: Offers a comprehensive warranty on electric batteries.
- Impressive Acceleration: Known for its superior acceleration compared to other two-wheelers in the market.
Funding and Investors
Ather Energy initially received ₹25 lakh from Srini V. Srinivasan, which helped sustain the company for six months. Sachin Bansal, co-owner of Flipkart, invested around ₹400 crore in a series of funding rounds, significantly aiding Ather Energy’s recovery and debt repayment. The company later raised ₹500 crore from various global investors. In September 2023, Hero MotoCorp and GIC invested ₹900 crore through a rights issue, with Hero MotoCorp increasing its stake to 39.7% by investing an additional ₹140 crore. Other notable investors include the National Investment and Infrastructure Fund and Tiger Global.
Future Revenue Projections
Despite facing challenges, Ather Energy has shown rapid growth. For the upcoming year, the company anticipates a substantial increase in revenue, aiming for ₹5,000-6,000 crore as they plan to restart their growth trajectory.
Awards and Recognitions
Ather Energy has received numerous accolades, including:
- 2013: Most Preferred Workplace (Manufacturing Edition), Top 25 Safest Workplaces in India
- 2014: Keep Walking Award (Tarun Mehta)
- 2015: Young Entrepreneur Award (Tarun Mehta and Swapnil Jain), Jagdish Khattar Rising Star Award (Tarun Mehta)
- 2016: Best PR & Comms Team (2W Category), Best Creative Film (2W Category), Electric Scooter of the Year
- 2017: Two-Wheeler Manufacturer of the Year
- 2018: Best of 2021 (Ather 450X), Green Two-Wheeler of the Year, EV Innovation
- 2019: Gold Award for Mobility Design, Most Promising Startup, Best on Campus
- 2020: Model Citizen (Ather 450X)
- 2021: Best EV Startup of the Year, Best Electric Two-Wheeler of the Year (Ather 450X)
