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Ather Energy’s Losses Surge Amidst EV Boom

Ather’s total expenses more than tripled to Rs 2,670.6 crore from Rs 757.9 crore in FY22, despite strong sales….reports Asian Lite News

Hero MotoCorp-backed electric vehicle (EV) company Ather Energy’s losses surged more than 2.5 times in the financial year 2022-23.

The EV startup reported a loss of Rs 864.5 crore in FY23, against a loss of Rs 344.1 crore in FY22, according to its annual financial statements filed with the Registrar of Companies (RoC).

Ather’s total expenses more than tripled to Rs 2,670.6 crore from Rs 757.9 crore in FY22, despite strong sales.

The surge in losses reported even after the firm’s revenue from operations grew 4.3 times to reach Rs 1,784 crore during the fiscal year ending March 2023.

The company spent Rs 1.5 to earn every Rs 1 from operations in FY23, while EBITDA margin improved to -38.3 per cent, according to reports.

Earlier this month, the electric vehicle firm raised Rs 900 crore from existing shareholders Hero MotoCorp and global investment firm GIC through a rights issue.

Ather said it plans to use the funds for new product launch and expansion of its charging infrastructure and retail network.

“Last few years have demonstrated just how quick the EV transition in India can be and how it will be led by 2 wheelers. This round will allow us to expand our product portfolio while expanding our footprint,” said Tarun Mehta, CEO and Co-founder, Ather Energy.

Currently, Ather Energy has over 200 retail touchpoints across more than 100 cities and a public fast-charging network for electric two-wheelers with over 1,500 Ather Grids.

Ather recently expanded its product portfolio with 2.9 kWh and 3.7 kWh battery options in the flagship 450X as well as an entry level product, the 450S, to address a bigger segment of the two-wheeler market.

Founded in 2013 by IIT Madras alumni Mehta and Swapnil Jain, Ather is backed by Hero MotoCorp, GIC, NIIF, Sachin Bansal, and Tiger Global.

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