Ather Energy’s revenue in FY22 crosses Rs 400 Cr with a 5X rise
- ByStartupStory | June 30, 2022
Ather Energy, a manufacturer of electric vehicles, saw a five-fold increase in sales for the fiscal year that ended in March, from Rs 79 crore to Rs 408 crore, but a 47 per cent year-over-year increase in losses, to Rs 344 crore. According to the company’s financials obtained through the business intelligence platform Tofler, Ather sold 23,408 electric scooters in FY22, an increase of 4.2 times over the 5,523 units sold in FY21.
Despite the fact that the company was only able to fulfil 50% of the orders it received throughout the year due to significant supply shortages for several essential components, Ather said as much in its report. Around 81 per cent of the total units sold were the top-of-the-line Ather 450X model, and the remaining 19 per cent were Ather 450 Plus models, indicating strong demand among consumers of high-end scooters.
The cost of materials and staff benefits accounted for the majority of Ather’s an operational expense, which more than quadrupled to Rs 718 crore for the year. The firm stated in the financials that it is establishing a second manufacturing facility nearby in order to increase production capacity at its Hosur factory from 120,000 automobiles per year to 400,000 vehicles per year. The facility is now ready to serve as the company’s national manufacturing hub, meeting demand from around the nation for the foreseeable future, according to the statement. “In addition to making electric vehicles, the factory concentrates on manufacturing lithium-ion batteries.
In a funding round led by the Indian government’s sovereign wealth fund, National Investment and Infrastructure Fund (NIIF), and current investor Hero MotoCorp NSE -1.19 per cent, Ather raised $128 million in May. By the end of FY22, the Bengaluru-based EV manufacturer had grown from nine retail locations across nine cities the previous year to 34 locations across 28 cities. The network is geographically spread out across India, with 51% of its population living in the South, followed by 21% in the West, 20% in the North, and 9% in the East. The business claimed that in order to expand its sales and service network, it switched from the company-owned store model to a dealership model.
Ather reported that it had added 203 fast charging stations this year, bringing the total to over 351 across 28 states. The business claimed that this year saw the introduction of the second generation of fast charging technologies. The new technology has a greater level of reliability and speeds up charging by 50% over the first generation. In the fourth quarter of FY22, EV scooter penetration in the overall scooter market reached 11%; by March 2022, it would have reached 12.5%. The business said that this is quicker than any estimates made for the sector.
Since March of this year, scooters made by Ather’s rival Ola Electric and other companies like Okinawa and Pure EV have caught fire. This has raised concerns in the developing EV two-wheeler market. Due to the recent fires which have decreased demand for electric scooters, Ather was the only two-wheeler EV company among the top five manufacturers to witness an increase in sales in May.
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