Ather Energy: How This Indian Electrical Vehicle Company Crossed INR 400 Crores In Revenue

About Ather Energy

Ather Energy was founded in 2013. It aims to design and sell premium electric vehicles in the Indian market. It is one of India’s top competitors in the electrical vehicle market, though it only sells two-wheelers for now. This electric vehicle manufacturing company was announced in the first half of 2021 as the fourth-largest-selling EV two-wheeler in India. The company has also achieved a milestone in developing its independent charging infrastructure for an electric vehicle, Ather Grid, which is present in over 80 cities with over 1000 charging grids.  

Origin of the Company

Swapnil Jain and Tarun Mehta 2013 founded the company. They are both IIT Madras alumni in the department of Engineering Design. The founders mention finding deep support from their college professors, which helped them boost their morale and work toward the venture. Tarun Mehta was working for Ashok Leyland, and Swapnil Jain was working for General Motors when they left their job to start the company.

Near the end of 2014, Flipkart founders Binny and Sachin Bansal showed a positive interest in the company for electric vehicles. They invested in the company for $1 million as seed capital. The company later signed a Memorandum of understanding with the Tamil Nadu government for setting up a 400,000 square feet manufacturing plant there. 

Future of Electric Vehicles in India

Electric Vehicles are the way forward for developing a sustainable mode of transport in India. They are a better alternative than the old traditional methods of use of fossil fuels for commuting. This vehicle benefits public health and our environment by spreading less air pollution. Many countries like France have started planning a complete ban on petrol and diesel vehicles within the next twenty years. This might soon follow in India, leaving electric vehicles as the only viable alternative.

With fossil fuels becoming increasingly expensive, many users see the electric vehicle as a cost-effective solution. Therefore, the cost of charging through a power station is expected to be low. Even now, the cost of charging at Ather Grid is free. One can easily see why this may appeal to consumers.

The Mission

The company wants to build the future of mobility, which will be connected and electric. Their tagline goes – All Brain. All Power. All Electric. They believe these intelligent vehicles are revolutionizing commute experiences. The company has also launched a unique purchase model for a vehicle company. The products can be purchased only through online mode and would be delivered to the customer’s doorstep. This year they have set their goal of installing more than 2,500 electric charging stations in over 100 cities all over India. 

Challenges

The company’s biggest obstacle would be shifting the average two-wheeler customer from a petrol/diesel vehicle to an electric vehicle. Many people find this change uncomfortable because they are already habitual to petrol/diesel vehicles. Electric vehicles are new, and people need an understanding of how it functions and have many misunderstanding related to them. 

The founders had also said how difficult it was to start the company as there was no ecosystem for Electrical Vehicles in India. They could not find vendors, and even now, they are the only distributor and manufacturer of the electric scooter, its accessories, and batteries. 

Finances

This company’s registered annual revenue in FY20 was Rs.48.8 crore, which jumped to Rs.79.8 crore in FY21 and then to Rs.408.5 crore in FY22. The company jumped to 411.9% in Revenue from FY21 to FY22. The CEO is hopeful and believes the number will double in FY23.

The sale of its electric scooters contributes to 98% of the company’s operating Revenue. The company is also said to have raised $286.6 million over nine funding rounds.

Ather Energy aims to increase its multifold sales this year and double production volume.