Ather Energy Set to File DRHP for Rs 4,500 Crore IPO at $2.5 Billion Valuation
- ByStartupStory | September 7, 2024
Ather Energy, a prominent player in the electric vehicle (EV) sector, is gearing up to file its Draft Red Herring Prospectus (DRHP) next week for an initial public offering (IPO) valued at Rs 4,500 crore. The move aims to position the company at a valuation of $2.5 billion, reflecting its significant growth and market presence.
Last month, Ather Energy achieved a milestone by securing $71 million in a new funding round led by the National Investment and Infrastructure Fund (NIIF), its existing investor. This funding round elevated the company’s valuation to $1.3 billion, officially marking Ather Energy as a unicorn startup.
The company has been active in raising funds, with several rounds of financing since late 2023. In May this year, Ather raised Rs 286 crore ($34 million) through a combination of debt and equity, including venture debt and contributions from co-founders. Venture debt firm Stride Ventures invested close to Rs 200 crore via debentures, while Ather’s co-founders, Tarun Sanjay Mehta and Swapnil Jain, contributed Rs 43.28 crore each through Series F preference shares.
In September of the previous year, Hero MotoCorp, an existing shareholder, announced its board’s approval to invest Rs 550 crore into Ather Energy.
Ather’s move towards an IPO comes shortly after its close rival, Ola Electric, launched its own IPO in August, raising Rs 6,146 crore. Ola Electric’s shares surged 20 percent on market debut, valuing the startup at approximately $4.8 billion.
For the financial year 2024, Ather Energy reported a consolidated revenue of Rs 1,753 crore, which was a 1.7 percent decrease Year-on-Year (YoY). As of August, Ather Energy holds a market share of nearly 12% and has experienced a month-on-month growth in EV two-wheeler sales of 51%, reaching 10,829 units. Despite Ather’s progress, Ola Electric continues to dominate the market with a share exceeding 40%, followed by TVS Motors with a 30% share.
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